Thu Jul 03 10:53:51 UTC 2025: **Summary:**

This article from *The Hindu*, dated July 3, 2025, reports that the Indian rupee (INR) strengthened against the US dollar (USD) on Thursday, closing at 85.31 after an initial dip. This was primarily driven by a weaker USD due to disappointing US employment data and a drop in US treasury yields, as well as a decline in global crude oil prices. However, gains were capped by weak domestic market performance. Analysts predict continued strength in the rupee due to a weak dollar and improved global risk appetite, but caution that trade tariff uncertainty may limit gains. Meanwhile, domestic equity markets declined, and foreign institutional investors continued to sell Indian equities.

**News Article:**

**Rupee Jumps on Weak Dollar, Crude Oil Decline**

*New Delhi, July 3, 2025* – The Indian rupee (INR) experienced a significant rebound against the US dollar (USD) on Thursday, closing at 85.31, according to provisional figures. This surge follows an initial decline and is attributed to a weakening US dollar stemming from weaker-than-expected ADP Non-Farm Employment data and declining US treasury yields.

The decline in global crude oil prices, with Brent crude falling to $68.41 per barrel, further supported the rupee.

“The rupee rose sharply on Friday on a weak U.S. Dollar and a decline in U.S. treasury yields. A decline in crude oil prices also favoured the rupee. However, weak domestic markets capped sharp gains,” said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.

While the dollar index edged up slightly, the overall sentiment favored the rupee. Analysts anticipate continued strengthening, driven by a weak dollar and improved global risk appetite. However, ongoing uncertainty surrounding trade tariffs may limit further gains.

“We expect the rupee to strengthen on a weak U.S. Dollar and rise in risk appetite in global markets. Overall, a weak tone in crude oil may also support the domestic currency. However, uncertainty over trade tariffs may cap sharp gains,” Mr. Choudhary stated. He projects a trading range of 84.90 to 85.60 for the USD/INR spot price in the near term.

Contrasting the currency gains, domestic equity markets experienced a downturn. The Sensex declined by 170.22 points (0.20%) to 83,239.47, and the Nifty fell 48.10 points (0.19%) to 25,405.30. Foreign institutional investors continued to offload Indian equities, with net sales totaling ₹1,561.62 crore on Wednesday.

Investors are advised to closely monitor upcoming Non-Farm payrolls data from the US, which is expected to provide further direction to the currency markets.

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