Forex traders said the rupee opened on a positive note with the rise in risk appetite in the global markets amid easing tensions over trade tariffs and hopes of a truce between Russia and Ukraine. Representational file image.
| Photo Credit: AP
The rupee pared initial gains and settled for the day lower by 18 paise at 87.25 (provisional) against the U.S. dollar on Thursday (August 21, 2025), on a strong American currency and a recovery in crude oil prices.
Forex traders said the rupee opened on a positive note with the rise in risk appetite in the global markets amid easing tensions over trade tariffs and hopes of a truce between Russia and Ukraine.
However, the strength of the American currency in the overseas market and rising crude oil prices dented investor sentiments and restricted the upmove in the local unit.
At the interbank foreign exchange market, the rupee opened on a positive note at 87.04, then touched an early high of 86.93 and an intraday low of 87.27 against the U.S. dollar.
The domestic unit settled for the day at 87.25 (provisional), registering a decline of 18 paise over its previous close.
On Wednesday (August 20, 2025), the rupee settled on a higher note at 87.07 against the U.S. dollar.
The Indian rupee lost early gains on positive crude oil prices and the positive U.S. dollar index. However, a rise in the domestic markets supported the rupee at lower levels, said Anuj Chaudhary, Research Analyst, Commodities and Currencies, Mirae Asset Sharekhan.
“We expect the rupee to trade with a positive bias on improved global risk sentiments and fading worries over trade tariffs. Optimism over GST reforms may also support the rupee. However, dollar demand from importers capped sharp upside. Investors may now focus on the Jackson Hole Symposium. Traders may take cues from weekly unemployment claims and PMI data from the U.S. The USD-INR spot price is expected to trade in a range of 86.90 to 87.50,” Mr. Chaudhary added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.02% to 98.23.
Brent crude, the global oil benchmark, was trading 0.90% higher at $67.44 per barrel in futures trade, as investors remained focused on the Ukraine peace push and sanctions on Russia remaining in place for now.
Traders are focused on whether U.S. Fed Chief Jerome Powell will push back against market expectations for a rate cut at the September 16-17 meeting when he speaks at the Jackson Hole Symposium on Friday (August 15, 2025).
On the domestic equity market front, stock markets advanced for the sixth consecutive day, with Sensex settling for the day with gains of 142.87 points at 82,000.71, while Nifty was up by 33.20 points at 25,083.75.
Foreign Institutional Investors offloaded equities worth ₹1,100.09 crore on Wednesday (August 20, 2025), according to exchange data.
Published – August 21, 2025 05:26 pm IST
