May 2, 2025e-Paper
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May 2, 2025e-Paper
Published – May 02, 2025 11:28 am IST – Mumbai
Image used for representative purpose only. | Photo Credit: Reuters
The rupee appreciated 77 paise to 83.77 against the U.S. dollar in early trade on Friday, supported by sustained foreign fund inflows and stronger domestic data.
Forex traders said GST collections for April were robust at ₹2.37 lakh crore, an all-time high, reflecting the health of domestic demand. Moreover, a positive trend in domestic equities driven by foreign fund inflows further boosted sentiments.
However, caution lingers, as they noted any escalation in tensions between India and Pakistan could swiftly reverse gains and pressurise the rupee, much like past geopolitical episodes.
At the interbank foreign exchange, the domestic unit opened at 83.98 against the greenback, then gained ground and touched 83.77, registering a gain of 77 paise over its previous close.
On Wednesday, the rupee surged 42 paise to 84.54 against the U.S. dollar.
The forex market was closed on Thursday on account of Maharashtra Day.
"The rupee's 2% rise in March marked its best performance since November 2018, aided by a weaker U.S. dollar outlook. However, caution persists amid ongoing geopolitical risks — particularly tensions with Pakistan over Kashmir — which could spark rupee volatility.
"At the same time, the Dollar Index (DXY) has found support at 98 and may rebound toward 102 on the back of renewed trade optimism. A continued dollar rally could weigh on the rupee, limiting its recent gains and reintroducing near-term instability," CR Forex Advisors MD Amit Pabari said.
On the domestic macroeconomic front, Goods and Services Tax (GST) collection rose 12.6% Y-o-Y to an all-time high of about ₹2.37 lakh crore in April, which the government said shows the resilience of the Indian economy and the effectiveness of cooperative federalism.
The gross GST mop-up was ₹2.10 lakh crore in April 2024 — the second-highest collection ever since GST was rolled out on July 1, 2017. The net mop-up was ₹1.92 lakh crore.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.27% at 99.97.
Brent crude, the global oil benchmark, rose 0.55% to $62.45 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex advanced 722.82 points or 0.90% to 80,965.06, while the Nifty rose 203.70 points or 0.84% to 24,537.90.
Foreign institutional investors (FIIs) bought equities worth ₹50.57 crore on a net basis on Wednesday, according to exchange data.
Published – May 02, 2025 11:28 am IST
currency values / foreign exchange market / financial markets / market and exchange
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Rupee jumps 77 paise to 83.77 against U.S. dollar in early trade – The Hindu
