Explained: How much power has the rupee shown in a week, this is how it made the dollar helpless
10 February 2025, remember that day when the rupee reached a lifetime low against the dollar. It was standing at the threshold of 88 level. After that, the rupee recognized its strength and bounced back in such a way that the dollar came to its knees in one stroke. In the last week, the dollar appeared completely helpless against the rupee. From the high of 10 February, the rupee had strengthened by more than one and a half percent against the dollar till 14 February. The view of which was not only seen by Asian countries but the whole world.
Even though the rupee has seen a slight decline since Monday, it is still standing strong against the dollar by more than one percent. If we look at the data from February 10 to February 18, the rupee is still standing strong against the dollar by more than one percent. According to experts, the rupee is performing quite well against the dollar as compared to the rest of the world's currencies.
While the rupee has seen a decline of less than 5 percent against the dollar in the last year, on the other hand, China's Yuan and Japan's Yen have seen a much bigger decline than that. Let us try to explain to you in the language of figures, how the rupee brought the dollar to its knees and forced it to be helpless in front of it since February 10.
The rupee strengthened since February 10
According to the data of the Interbank Exchange Rate, on February 10, the rupee reached a lifetime low of 87.99 against the dollar. After that, the rupee started gaining momentum. On February 11, the rupee reached the level of 86.65. After that, during the trading session on February 12, it also reached the level of 86.33. However, the closing of the rupee was seen at the level of 87. On February 13, once again, the rupee jumped and defeated the dollar and was seen at the level of 86.65. After that, on the last trading day of the last week i.e. February 14, the rupee came to 86.54 and finally closed at the level of 86.71. This means that in the 4 trading days of the last week, the rupee defeated the dollar by about one and a half percent.
Decline for two days
However, for the last two days, the rupee has been seeing a decline against the dollar. On Tuesday, the rupee is seen trading near the level of 87 against the dollar and is trading with a decline of 13 to 15 paise as compared to the previous closing. Even after that, the rupee is trading with a gain of more than 1 percent against the lifetime low level. According to experts, due to FPI and crude oil prices, there is an environment of decline in the rupee on Monday and Tuesday. But this decline is not as big as it could be. There is a reason for it too. RBI is engaged in handling the rupee. Due to its intervention, there is not much decline in the rupee.
what is the situation today
The rupee fell by 12 to 15 paise to trade at 86.96-86.98 against the US dollar in early trade on Tuesday due to continued foreign capital outflows and a negative trend in domestic equities. Forex traders said there is a negative bias for the USD/INR pair as foreign investors continue to sell domestic equities and RBI support is gradually waning. The rupee opened at 86.94 in the interbank foreign currency market and then fell to 86.98 against the US currency, showing a decline of 10 to 12 paise over its previous close. On Monday, the rupee closed 17 paise lower at 86.88 against the US dollar.
Rupee weakened due to poor economic data
Traders said the central bank's measures as well as the absence of anticipated US tariffs have eased trade concerns, but challenges remain on the domestic macroeconomic front. India's exports declined for the third consecutive month in January, falling 2.38 per cent year-on-year to US$36.43 billion, while the trade deficit widened to US$22.99 billion in the month. Imports in January rose 10.28 per cent year-on-year to US$59.42 billion, led by a rise in gold shipments, according to commerce ministry data. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, traded 0.31 per cent higher at 106.90. Global oil benchmark Brent crude futures rose 0.24 per cent to US$75.40 per barrel.
Can the rupee strengthen further?
Amit Pabari, MD-CR Forex Advisors, said that the dollar rupee pair is expected to trade within the 86.60-87.20 range. The level of 87.20 is emerging as a strong resistance, while 86.50 is acting as a crucial support space. A decisive move below 86.50 can pave the way for 85.80-86.00 levels, which will increase the strength of the rupee. In the domestic equity market, the 30-share BSE Sensex was trading 30.11 points or 0.04 per cent lower at 75,966.75 in morning trade, while the Nifty was down 29.00 points or 0.13 per cent at 22,930.50. According to exchange data, foreign institutional investors (FIIs) sold equities worth Rs 3,937.83 crore on a net basis in the capital market on Monday.