Kamal Ghorui
Rupee opened in green on Thursday, rising 7 paise to reach 90.40 against US dollar. The currency was supported by corporate dollar demand, while investors remained cautious as they awaited fine print of the India-US trade deal.According to markets, the market mood has shifted from optimism to caution, with participants waiting for official confirmation, as neither India nor the US has released formal documentation or published the final terms of the agreement so far. Sentiment also remained guarded ahead of the Reserve Bank of India’s interest rate decision scheduled for Friday. At the interbank foreign exchange market, the domestic currency opened at 90.52 against the US dollar and later firmed up to 90.40, registering a 7-paise gain compared with its previous close. On Wednesday, the rupee had weakened by 15 paise to close at 90.47 against the greenback. During early trade on Thursday, it also touched a low of 90.53. “Market is now waiting for confirmation and finer details before extending the rupee’s rally further,” CR forex advisors managing director Amit Pabari told PTI. He noted that attention has now shifted to the RBI’s Monetary Policy Committee meeting. “Markets widely expect the central bank to keep interest rates unchanged tomorrow, with a growing consensus that rate cuts are unlikely at least until the end of 2026,” he said. In the global markets, the dollar index, which tracks the greenback against a basket of six major currencies, was trading 0.18% higher at 97.79. Brent crude, the international oil benchmark, was down 2% at $68.07 per barrel in futures trade. From a technical standpoint, Pabari highlighted strong support levels for the rupee. “Technically, the 89.80–90.00 zone has emerged as a strong support base. With this area holding firmly, the pair now appears poised to move back toward the 90.80–91.20 range with greater conviction,” he said, adding that “going forward, RBI actions will also remain a key factor to watch along with confirmation of the final trade agreement and its exact terms.” Domestic equity benchmarks opened lower in early trade. Meanwhile, foreign institutional investors were net buyers in the equity market on Wednesday, purchasing shares worth Rs 29.79 crore, according to exchange data.
