The rupee depreciated 19 paise to 85.15 against the U.S. dollar in early trade, driven by renewed geopolitical tensions and increased demand for the U.S. dollar. File
| Photo Credit: Reuters

The rupee depreciated 19 paise to 85.15 against the U.S. dollar in early trade on Wednesday (April 30, 2025), driven by renewed geopolitical tensions and increased demand for the U.S. dollar, which together exerted pressure on the local unit.

Forex traders said geopolitical tensions between India and Pakistan have sparked risk-off sentiment in the market leading to the rupee weakness.

However, foreign fund inflows and crude oil prices cushioned the downside for the domestic unit.

At the interbank foreign exchange, the domestic unit opened at 85.15 against the greenback, registering a fall of 19 paise over its previous close.

On Tuesday (April 29, 2025), the rupee gained 27 paise to settle at 84.96 against the U.S. dollar.

“Looking ahead, the rupee is expected to find immediate support in the 84.90–85.00 range, with a slight upward bias, moving towards the 85.80–86.00 levels in the near term,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, amid rising tensions between India and Pakistan, the U.S. has called on both countries “not to escalate” the conflict. Secretary of State Marco Rubio will speak to Foreign Ministers of both countries.”

U.S. State Department Spokesperson Tammy Bruce at a press briefing on Tuesday (April 29, 2025) said that Washington is reaching out to both India and Pakistan “regarding the Kashmir situation” and telling “them not to escalate the situation.”

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.11% at 99.34.

Brent crude, the global oil benchmark, fell 1.11% to $63.54 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 165.90 points or 0.21% to 80,454.28, while the Nifty rose 51.30 points or 0.21% to 24,387.25.

Foreign institutional investors (FIIs) bought equities worth ₹2,385.61 crore on a net basis on Tuesday (April 29, 2025), according to exchange data.

Meanwhile, India and the US are exploring opportunities for an interim trade arrangement in goods to secure an “early mutual win” ahead of finalising the first phase of the proposed bilateral trade agreement by the fall of this year.

The Commerce Ministry said on Tuesday (April 29, 2025) that both countries have initiated sectoral-level talks and more engagements are planned from May-end.

On the domestic macroeconomic front, a finance ministry report on Tuesday (April 29, 2025) said with the right strategies in place, continued domestic reforms, and a strong focus on infrastructure development and job creation, the economy can demonstrate resilient growth despite global uncertainties.