Rupee Strengthens to 84.96/USD on April 4, 2025, as Dollar Index Plunges Nearly 2%

The Indian rupee surged past the 85 mark against the US dollar in early trade on Friday, April 4, for the first time since December 2024. The appreciation followed a broad-based decline in the US dollar, triggered by recent global developments.

At the interbank foreign exchange market, the rupee opened at 85.07 and quickly strengthened to 84.96, marking a 34-paise gain compared to the previous close.

Factors Behind the Rupee’s Movement

The movement in the rupee came amid a sharp fall in the US dollar index, which plunged nearly 2% on Thursday, April 3 — its steepest one-day drop in over two years. This decline was driven by market reactions to policy developments in the United States, including new tariff measures.

Additionally, a decline in global crude oil prices supported the rupee’s gains. Brent crude futures were down 0.84%, trading at USD 69.55 per barrel.

US Policy Developments and Market Response

The depreciation in the dollar index followed President Donald Trump’s announcement of new tariffs on goods from more than 60 countries. These policy changes raised concerns around global trade, leading to a selloff in the US dollar and increased volatility in global currency markets.

Dollar Index

The dollar index, which measures the US currency’s performance against a basket of six major global currencies, fell to 101.64, down 0.42% on the day. The weakness in the greenback contributed to the rupee’s upward movement during early trade hours.

Conclusion

The rupee’s appreciation to 84.96 was supported by a decline in the US dollar index and lower crude oil prices. This marked its first movement past the 85 mark since December 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.