The rupee was trading at 281.02 against the US dollar, showing an improvement of Rs 0.19, compared to Wednesday’s closing rate of 281.21.
Globally, the US dollar remained stable on Thursday and is on track for its strongest weekly performance in almost a year. A major factor behind the dollar’s strength is the weakness of the Japanese yen, which has come under pressure following a leadership change within Japan’s ruling party.
The yen experienced fluctuations after Sanae Takaichi was nominated as the leader of Japan’s Liberal Democratic Party, putting her on course to become the country’s first female prime minister. This development has raised expectations of increased government spending and the continuation of loose monetary policy.
The Japanese yen was trading at 152.49 per dollar, showing slight improvement after having fallen to 153 per dollar the previous night — its lowest level in eight months. The yen has declined by more than 3% this week, marking its weakest performance since September 2024.
Against a basket of major currencies, the US dollar index remained stable at 98.77 with little change.
