Rupee rallies: Logs biggest single-day gain since 2022 amid US Dollar weakness

The rupee recorded its biggest single-day gain since November 2022, appreciating about 80 paise against the dollar. The greenback weakened on concerns about mounting US domestic debt, even as domestic equity markets attracted some FPI inflows.

The Indian unit opened about 4 paise stronger at 85.97 per USD against previous close of 86.01. The USDINR pair hit a high/low of 85.97/85.1425.

Dilip Parmar, Senior Research Analyst, HDFC Securities, said: “The rupee experienced its most significant single-day gain since November 11, 2022. This upward movement was primarily fueled by a weaker US dollar and a strong performance in the domestic equity market.”

Additionally, the central bank’s efforts to encourage foreign investment in corporate bonds, providing short-duration liquidity, further bolstered the rupee’s appreciation.

Parmar said, looking ahead, the spot USDINR is expected to find support at 84.94 and face resistance at 86.15.

Benchmark equity indices BSE Sensex and NSE Nifty closed up 0.95 per cent (or 769 points) and 0.99 per cent (243 points), respectively.

The dollar is facing rough weather due to rising concerns about US financial stability in the face of mounting domestic debt and Moody’s decision to cut the US credit rating last week, among others.

Published on May 23, 2025