Rupee makes recovery; gold at all-time high of ₹96,450

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| Photo Credit: Reuters

After three consecutive days of decline, the rupee on Friday made a strong recovery, gaining 58 paise against the U.S. dollar, and settling at 86.10 from its previous close of 86.68.

The domestic currency was supported primarily by a weaker dollar index and a significant sentiment boost from the U.S.’s decision to pause tariffs for the next 90 days.

“This move has been well received by the markets, as it opens the door for further dialogue between the two nations, potentially easing trade tensions in the near future,” said Jateen Trivedi, VP Research Analyst — Commodity and Currency, LKP Securities.

Additionally, Indian capital markets rallied, reflecting optimism around improving bilateral trade ties and the reduced risk premium for Indian exports, he said.

The escalating trade war between the United States and China, the world’s two biggest economies, led to gold prices soaring to fresh high of ₹96,450 on Friday compared with ₹90,200 on Wednesday, as investors ran for cover. Thursday was a holiday on account of Mahavir Jayanti.

“Gold extended its record-setting rally, hitting fresh lifetime highs, defying rupee’s strength, as geopolitical tensions and tariff battles between the U.S. and China escalated further,” Mr. Trivedi said.