Mon Jun 02 11:20:42 UTC 2025: **Summary:**

On June 2, 2025, the Indian Rupee appreciated against the US dollar, closing at 85.39 due to a weak dollar and anticipation of interest rate cuts by the Reserve Bank of India (RBI). However, gains were limited by volatile equity markets, foreign fund outflows, and rising crude oil prices. The RBI’s Monetary Policy Committee is set to discuss its bi-monthly policy, with the outcome expected on June 6. India’s manufacturing sector growth slowed in May, and equity markets experienced a slight decline. Despite this, the Indian economy showed strong growth in the last quarter of FY25, exceeding expectations, with robust private consumption and growth in construction and manufacturing. The government also met its fiscal deficit target, and GST collections remained strong. India’s forex reserves also increased significantly.

**News Article:**

**Rupee Gains Ground Amidst Economic Crosscurrents**

**Mumbai, June 2, 2025** – The Indian Rupee strengthened to 85.39 against the US dollar today, fueled by a weakening American currency and anticipation of further interest rate cuts by the Reserve Bank of India (RBI). However, market volatility, foreign investment outflows, and rising crude oil prices tempered the Rupee’s advance.

The RBI’s Monetary Policy Committee (MPC) will convene this week to deliberate on its next bi-monthly policy, with the outcome highly anticipated by investors.

While the Rupee enjoyed a positive session, other economic indicators presented a mixed picture. A monthly survey revealed a slowdown in India’s manufacturing sector growth in May, attributed to inflationary pressures and softer demand. The BSE Sensex experienced a minor decline, reflecting investor caution.

Despite these headwinds, the Indian economy showcased underlying strength, with recent data indicating robust growth in the last quarter of the 2024-25 fiscal year. The GDP expanded at a faster-than-expected rate of 7.4%, driven by a rise in private consumption and strong growth in the construction and manufacturing sectors. The government also successfully met its fiscal deficit target, and Goods and Services Tax (GST) collections remained robust, exceeding ₹2 lakh crore for the second consecutive month. Furthermore, India’s foreign exchange reserves saw a significant increase, adding to the positive economic narrative.

Analysts suggest that while global factors continue to influence the Rupee’s performance, the underlying strength of the Indian economy provides a solid foundation for future growth. The market now awaits the MPC’s decision, which is expected to provide further direction for the Rupee and the broader Indian economy.

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