Rupee rises 17 paise to close at 85.40 against U.S. dollar

Rupee strengthens against dollar on weak U.S. dollar index and falling crude oil prices, impacting forex market.

The rupee appreciated 17 paise to settle at 85.40 (provisional) against the U.S. dollar on Monday (May 19, 2025), on a weak U.S. dollar index and a decline in crude oil prices.

Forex traders said global investors were also cautious as global rating agency Moody's downgraded U.S. investment grade rating, leading to a fall in dollar index.

At the interbank foreign exchange, the domestic unit opened at 85.43 and moved between the intra-day high of 85.35 and the low of 85.61 against the greenback. The unit ended the session at 85.40 (provisional), registering a gain of 17 paise over its previous closing level.

On Friday (May 16, 2025), the rupee pared its gains and settled 3 paise lower at 85.57 against the dollar.

"We expect the rupee to trade with a positive bias amid persistent weakness in U.S. dollar index and a weak tone in global crude oil prices," Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan said, adding weak domestic equities capped a sharp upside.

"USD-INR spot price is expected to trade in a range of 85.10 to 85.65," he noted.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.86% at 100.22.