The Indian rupee on Friday slipped below 84 against the US dollar with a strong rally and reached its highest level in seven months. This is the biggest one-day jump in about two and a half years. Earlier on Thursday, the rupee closed at 84.49. This strength in the rupee has come mainly due to the continuous buying by foreign investors and expectations related to US trade talks. On Friday, the rupee rose by 71 paise to reach 83.78 per dollar.

Market experts said that the rupee has gained strength due to foreign investment in the stock market and debt market. Apart from this, the positive statement by Trump on the India-US tariff deal also supported the rupee.

The expert further said that despite the fall in the dollar, the rupee has opened strong, due to foreign investment and selling of the dollar. The surprising thing was that the Reserve Bank of India (RBI) did not come to the market to buy dollars, even though it had a short position of $84 billion till March 2025.

It is worth noting that the effect of the trade war between China and America is also visible on the market. The dollar index is at its lowest level in the last two weeks. At the same time, the Chinese Yuan is also seeing a decline. The Yuan is also trading with a decline of 0.31 percent.

Rupee is strong – what can make it cheaper?
Why goods / sectors can become cheaper

Petrol-diesel (oil) – crude oil is bought in dollars, a strong rupee will make imports cheaper

Mobile phones and electronic items – like iPhones, laptops, TVs – a large part of these are imported

Raw materials for medicines – APIs imported in the pharma industry can become cheaper

Some car parts auto companies – those who import foreign parts, their expenses will reduce

Gold and silver – these are also bought in dollars, a strong rupee can put pressure on their prices