Rupee vs Dollar: RBI's Strategy, Current Trends, and Global Impact

Indian currency began to be measured against the US dollar in 1947 after India gained its independence. The value of 1 INR then could be taken as 1 USD, considering that the national balance sheet was free from any credit or debit. 

The USDINR decreased 0.0030 or 0.00% to 85.5510 on Wednesday May 21 from 85.5540 in the previous trading session. Historically, the USDINR reached an All-time high of 88.10 in February of 2025. Indian Rupee - data, forecasts, historical chart - was last updated on May 21 of 2025.

Monthly values are averages of the daily data available. Preliminary value for the current month is provided by the source even if not all daily values are available for the entire month. The USDINR spot exchange rate specifies how much one currency, the USD, is currently worth in terms of the other, the INR. While the USDINR spot exchange rate is quoted and exchanged in the same day, the USDINR forward rate is quoted today but for delivery and payment on a specific future date.

 

The Indian rupee weakened to 86 per USD in May, depreciating 1.5% so far this month despite the broad weakness in the greenback amid dovish bets for the Reserve Bank of India. The latest data showed that consumer inflation in India fell more than expected to a near six-year low in April, strengthening bets that the RBI is due to extend its cutting cycle. The central bank had already delivered back-to-back cuts to its benchmark repo rate after holding it at the over-four-year high of 6.5% for one full year, attempting to halt the slowdown in domestic growth. The RBI also delivered a series of liquidity injections into commercial banks after the its Défense of the rupee drained domestic reserves and tightened financing conditions.

What are the reasons behind the Reserve Bank of India purchasing US dollars from the foreign exchange market?

The Reserve Bank of India (RBI) buys and sells US dollars and other currencies to manage the value of the rupee. When the rupee is appreciating too much, the RBI buys foreign currencies (like the US dollar) to prevent the rupee from becoming too strong, which could harm exports.

Why is the rupee falling?

oil price volatility due to ongoing geopolitical tensions (Russia-Ukraine war, Middle East crisis, Red Sea shipping issues and substantial FPI outflows in equity markets have also contributed to the rupee slide. Despite the slide, the rupee has remained among the world's most stable currencies.

will Bitcoin replace the Doller?

Bitcoin's rise highlights growing interest in decentralised finance, but it remains far from replacing the US Dollar, which maintains global supremacy due to stability, reach, and economic might. For now, Bitcoin serves as a supplementary seest, not a replacement.

What is the highest currency in the world?

The Kuwaiti Dinar (KWD), recognized as the highest-valued currency globally, symbolizes Kuwait's economic strength. In Kuwait, the Indian ex-pat group has a strong presence, making the KWD to INR rate the most popular Kuwait Dinar exchange rate.

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"Indian Rupee's Biggest Single-Day Gain in Over 2 Years: History, Trends & RBI Moves"

Indian currency began to be measured against the US dollar in 1947 after India gained its independence. The value of 1 INR then could be taken as 1 USD, considering that the national balance sheet was free from any credit or debit. 

According to the Bloomberg data, the local currency's biggest gain was seen after November 11, 2022, when it appreciated around 99 paise in a single day.

Indian rupee registered a biggest single day gain in over two years on May 23 by appreciating around 79 paise to close at 85.2188 against the US dollar. 

The local currency today ended at 85.2188 against the US dollar, as compared to 86.0050 against the greenback at previous close. Dileep 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 U.S. 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,” he added. The local currency opened 4 paise up at 85.97 against the US dollar.

 Anil Kumar Bhansali, Head of Treasury and Executive Director at Feenrex Treasury Advisors LLP, said rupee was volatile today also as it rose from a low of 86.06 to 85.10 with RBI selling dollars, long cutting first at 85.80 and then at 85.50 and lastly small IPO inflows (Hotel Leela and Aegis) taking rupee at 2 weeks high. Indian rupee logs biggest single-day gain in over 2 years at close.  

The lowest Indian rupee to US dollars rate was on 8 February 2025 when 1 Indian rupee was worth 0,0114 US dollar.

At the time of independence (in 1947), India's currency was pegged to pound sterling, and the exchange rate was a shilling and six pence for a rupee - which worked out to 13.33 to the pound. The dollar-pound exchange rate then was $4.03 to the pound, which in effect gave a rupee-dollar rate in 1947 of around 3.30.

The exchange rate of the rupee is determined largely by the market forces of demand and supply. The Reserve Bank of India has intervened occasionally to maintain orderly conditions and curb excessive volatility in the foreign exchange market.

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Borana Weaves IPO UPCOMING LISTENING

 The public  issue of Borana Weaves continued to see strong interest from investors on May 22, the third and final day of public bidding. The Rs 145-crore IPO of the textile company was subscribed nearly 149 times within the three days, with non-institutional investors (NII) overtaking retail investors by booking their reserved portion by a whopping 237 times.

The IPO received bids for 54.89 crore shares, as against its offer size of 36.89 lakh shares, according to data available on the NSE. While NIIs took the lead, retail investors followed closely by subscribing their reserved portion by over 200 times. The portion reserved for Qualified Institutional Buyers (QIBs) meanwhile was subscribed over 87 times times. Borana Weaves launched the IPO comprising 67.08 lakh shares to raise Rs 144.89 crore at the upper price band. The IPO, which solely comprised a fresh issue of shares, was open for public bidding till May 22. The textile company had set a price band of Rs 205-216 per share for the IPO.

Borana Weaves Ltd  is a reputed name in textile manufacturing, known for delivering a smooth and efficient journey from fibre to fabric. Since its establishment in 2020, the company has focused on fast, high-quality production, powered by a modern manufacturing facility and advanced high-speed water jet looms, ensuring speed without sacrificing quality. Significantly, they have made 24 water jet weaving looms in their operations, and it’s the reason for improved production efficiency and product quality. Borana Weaves has a mission regarding manufacturing capabilities and wants to explore new opportunities for its company’s growth. 

Apart from its mission for premium quality textiles and innovative Products. 

From POY to PTY, and through warping, sizing, and weaving, its process showcases the skill behind textile making.

What would Borana Weaves list at 40% above the market ?

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