Foreign institutional investors offloaded equities worth %476.86 crore on a net basis on May 13, 2025, according to exchange data. File
| Photo Credit: Reuters

The rupee pared most of its initial gains and ended the day higher by 10 paise at 85.26 (provisional) against the American currency on Wednesday (May 14, 2025), supported by gains in domestic equities and positive macroeconomic data.

Forex traders said the weakness of the American currency in the overseas market and rising appetite for riskier assets amid easing trade tariff tensions boosted investors’ sentiments.

At the interbank foreign exchange, the domestic unit opened on a positive note and moved between the intra-day high of 85.05 and the low of 85.52 against the greenback. The unit ended the session at 85.26 (provisional), registering a gain of 10 paise over its previous closing level.

On Tuesday (May 13, 2025), the rupee reversed early gains to settle flat at 85.36 against the U.S. dollar.

“Bolstered by a weaker U.S. dollar index, cheaper imported commodities, and a prevailing risk-on mood in the markets, the Indian rupee saw gains against the U.S. dollar on Wednesday (May 14, 2025),” said Dilip Parmar, Senior Research Analyst, HDFC Securities.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.64% lower at 100.35.

Brent crude, the global oil benchmark, fell 1.10% to $65.90 per barrel in futures trade.

“The retreat in crude oil prices and the overall softening of the greenback acted as tailwinds, specifically supporting the local currency during Wednesday’s (May 14, 2025) trading session,” Mr. Parmar said, adding that in the near future, the USD-INR spot rate is anticipated to find a floor near the 84.90 mark, while encountering upward pressure around the 85.70 level.

In the domestic equity market, the 30-share BSE Sensex advanced 182.34 points, or 0.22%, to close at 81,330.56, while the Nifty rose 88.55 points, or 0.36%, to 24,666.90.

Foreign institutional investors (FIIs) offloaded equities worth %476.86 crore on a net basis on Tuesday (May 13, 2025), according to exchange data.

On the domestic macroeconomic front, India’s retail inflation eased to a nearly six-year low of 3.16% in April, creating enough room for the Reserve Bank to go for another round of rate cut in the June monetary policy review.

Wholesale price inflation dropped to a 13-month low of 0.85% in April, with softening in prices of food articles, fuel and manufactured products.