The Indian rupee strengthened by 6 paise to close at 85.51 against the US dollar on Wednesday, June 11, 2025, supported by strong foreign fund inflows, a weaker American currency, and a broadly stable global economic environment.

The rupee gained momentum during the trading session but its advance was limited by cautious investor sentiment ahead of the release of Consumer Price Index (CPI) inflation data on Thursday (June 12).

Interbank Performance

At the interbank foreign exchange market:

• The rupee opened at 85.53

• Touched an intra-day high of 85.42

• Slid to a low of 85.56

• Closed provisionally at 85.51, marking a 6 paise appreciation from its previous close of 85.57

Despite fluctuations, the rupee maintained a relatively narrow trading band, helped by foreign institutional investor (FII) confidence and steady domestic macroeconomic signals.

Analyst Insights

Jateen Trivedi, Vice President Research Analyst – Commodity and Currency at LKP Securities, said:

“The rupee traded positive, supported by sustained FII and DII buying, while the dollar index remained largely flat. Even though rising crude oil prices capped gains, steady inflows kept the currency resilient.”

He added:

“The rupee is expected to remain in the range of 85.25 to 85.85 in the near term.”

Broader Market Support

The domestic equity market also aided sentiment:

• The 30-share BSE Sensex rose 123.42 points to close at 82,515.14

• The Nifty 50 gained 37.15 points to finish at 25,141.40

This positive performance of the broader market supported investor confidence and kept rupee volatility low despite geopolitical uncertainties abroad.

Global Currency Landscape

The US dollar index, which compares the greenback to a basket of six major currencies, dipped 0.05% to 99.04, helping other currencies including the rupee gain ground.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP:

“The rupee gained to 85.42 before retreating, amid lacklustre trading volumes. Everyone is awaiting clarity on the US-China trade framework, which is influencing dollar strength.”

Crude Oil Prices

On the commodity front, Brent crude futures edged lower by 0.09% to $66.81 per barrel, which provided additional support to the rupee by reducing India’s import bill pressure.

FII Activity

Data from stock exchanges showed that Foreign Institutional Investors (FIIs) were net buyers, having purchased ₹2,301.87 crore worth of Indian equities on Tuesday, June 10, 2025.

These sustained fund inflows reflect renewed global interest in Indian assets, which enhances rupee demand and reduces volatility.

Outlook

Traders and analysts are now closely watching for:

• India’s CPI inflation data on Thursday, which could influence the Reserve Bank of India’s future policy moves

• Further movements in Brent crude prices

• Clarity on global geopolitical tensions and US trade policy

Market experts suggest that the rupee may stay range-bound unless there is a major shift in inflation outlook or oil prices.

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