Indian Rupee Trading At 95.7225 Against The Dollar

Financial Market Overview

USDINR

The Indian rupee opened at 95.70 against the U.S. dollar on Thursday, compared to its previous close of 95.7050 on Wednesday.

The Indian rupee is expected to open slightly weaker on Thursday within the 95.74-95.78 range, driven down by soft Asian markets and accelerating foreign equity outflows, which saw $600 million pulled on Wednesday following $3 billion in recent days. This downward pressure has revived the dollar/rupee uptrend as renewed U.S.-Iran fighting over the Middle East conflict rattles risk assets and threatens India as a net energy importer, despite a potential opening for talks following an Israel-Lebanon ceasefire. However, the currency may find relief and support from anticipated government intervention, including a reported plan to eliminate capital gains tax on foreign portfolio investments in government securities to attract overseas capital.

United States 10-Year rates were 4.481% on the bond markets, while 2-year Treasury yields were 4.070%. The DXY index trading around 99.479.

 

At the time of writing, the USDINR was trading at 95.7225/95.7325.

 

EURUSD

During Thursday's Asian session, the EURUSD pair rebounded slightly from its weekly low below 1.1600, bolstered by an Israel-Lebanon ceasefire that weakened the safe-haven US Dollar and rising expectations of a 25 bps interest rate hike by the ECB. However, any significant upward momentum remains constrained by lingering Middle East tensions highlighted by recent military exchanges between the US and Iran in the Gulf which have pushed crude oil prices higher and revived hawkish Federal Reserve expectations amid inflation concerns. Consequently, investors are remaining cautious and looking toward Friday's crucial US Nonfarm Payrolls report for definitive clues on the Fed's future monetary policy path before making aggressive bets on the currency pair.

 

At the time of writing, the EURUSD was trading at 1.1604/1.1605.

 

GBPUSD

The GBPUSD pair saw modest gains above 1.3400 during Thursday's Asian session as a newly announced Israel-Lebanon ceasefire softened the safe-haven US Dollar, though further upside remains capped by broader geopolitical tensions and hawkish central bank outlooks. Despite the temporary relief in the Middle East, ongoing military escalations between the US and Iran alongside stalled diplomatic talks keep risk premium high, while persistent expectations of a Federal Reserve interest rate hike continue to underpin the greenback. Consequently, with traders remaining on the sidelines ahead of Friday's critical US Nonfarm Payrolls report for monetary policy guidance, the underlying fundamental landscape continues to favor USD bulls, suggesting that any rallies in the currency pair may trigger fresh selling.

 

At the time of writing, the GBPUSD was trading at 1.3421/1.3422.

 

USDJPY

The USDJPY pair snapped its four-day winning streak to trade around 159.90 during Thursday’s Asian session, driven down by a weakening US Dollar as safe-haven demand eased following a US-led ceasefire agreement between Israel and Lebanon. Despite this reprieve, market tensions remain as President Trump reportedly signaled he would consider ending the pause in airstrikes with Iran if US troops are targeted, while also hinting at a prolonged timeline for reopening the Strait of Hormuz. In response to the broader economic backdrop of persistent energy market volatility and loose fiscal policy which analysts warn could trigger a "historic Yen collapse" Japanese Finance Minister Satsuki Katayama stated that while she wouldn't comment on specific currency movements, Tokyo remains prepared to take "appropriate action" and is closely monitoring markets in coordination with the United States.

 

At the time of writing, the USDJPY was trading at 159.963/159.975.