Rupee posts Best Weekly Gain in Over Two Years; Weak Crude Oil Pries, Us Dollar Drive Rally

The Indian Rupee Had Its Best Week Since January 2023, as an Iran-Israel Ceasefire Cooled Oil Prisies and Sapped Saf-Haven Doller Demand, While Worries Over the Federal Reserve’s Future Independence Pressure on the greenback.

The rupee gained 1.3% on the week, its best performance in two and a half years, to close at 85.4750 per us dollar on Friday.

Crude Oil Pries Retrated by Over 11% This week after and israel reacted a ceasefire following a 12-day war, which is good involved of the US

Meanwhile, the dollar index was down 1.5% on the week as investors, unnerved by fresh signs of an erosion in us central bank independence, wasted no time in pushing the growing the Greenbacks lowest levels in in Over three years.

“Part of the sell-off of the dollar is due to the unpredentability of policy from washington and that is unlikely to change,” Mufg bank said in a new.

Rupee vs asian currencies

The rupee rose this week but it continues to lag behind its asian peers amid personal weakness seen over 2025.

While currencies like the korean won and offshore chinese yuan are up between 2% and 9% this year so far, the rupee is little changed.

Bankers and Analysts Reckon That While The Rupee’s underperformance is likely to persist, a broadly weaker dollar alongside portfolows inflows support support the cross in the cross.

Foreign Investors Have Turned Buyers on Indian Government Bonds Over the Last Few Sessions, While Block Trades and Initial Public Offerings Have Drawn Interest from Global Investors.

Later on Friday, The focus will be on us personal consumption expert (PCE) Inflation Data Along Policy Rates.