An employee counts Indian rupee currency notes inside a private money exchange office in New Delhi July 5, 2013. India’s central bank was seen selling dollars via state-run banks on Friday as the rupee approached its record low of 60.76 seen on June 26, four dealers said. REUTERS/Adnan Abidi (INDIA – Tags: BUSINESS)
| Photo Credit: Reuters

The rupee surged 38 paise to 84.58 (provisional) against the U.S. dollar on Wednesday (April 29, 2025) as trade-deal hopes and foreign fund inflows boosted investor sentiments.

U.S. President Donald Trump’s statement that tariff talks with India are in a positive direction enthused investors, forex dealers said.

However, geopolitical tensions between India and Pakistan and a muted sentiment in domestic equities weighed on investor sentiments.

At the interbank foreign exchange, the domestic unit opened at 85.15 and moved between the intra-day high of 84.47 and the low of 85.15 against the greenback. The unit ended the session at 84.58 (provisional), registering a gain of 38 paise over its previous closing level.

On Tuesday (April 29, 2025), the rupee gained 27 paise to settle at 84.96 against the U.S. dollar.

Meanwhile, Mr. Trump said negotiations with India over a bilateral trade deal are “coming along great”, and he thinks Washington will “have a deal” with New Delhi.

Mr. Trump made the remarks on Tuesday (April 29, 2025) while speaking to reporters before departing the White House for a rally in Michigan, marking the first 100 days of his second administration.

“India is coming along great. I think we’ll have a deal with India,” said the President.

“Prime Minister (Narendra Modi), as you know, was here three weeks ago, and they want to make a deal. We’ll see what happens,” he added.

Prime Minister Modi visited the White House in late February.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.20% at 99.44.

Brent crude, the global oil benchmark, fell 0.81% to $63.73 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex declined 46.14 points, or 0.06%, to close at 80,242.24, while the Nifty fell 1.75 points or 0.01% to settle at 24,334.20.

Foreign institutional investors (FIIs) bought equities worth ₹2,385.61 crore on a net basis on Tuesday (April 29, 2025), according to exchange data.

Meanwhile, the Cabinet Committee on Security (CCS), chaired by the Prime Minister, is understood to have deliberated on the overall security situation in Jammu and Kashmir on Wednesday (April 30, 2025) amid speculations about India’s possible retaliation to the Pahalgam terror attack in view of its cross-border linkages.

The CCS meeting was held at the Prime Minister’s Lok Kalyan Marg residence, a day after he held a meeting with the top military brass and accorded operational freedom to the armed forces on the “mode, targets and timing” of India’s response to the April 22 attack that killed 26 people.

It was attended by Defence Minister Rajnath Singh, Home Minister Amit Shah and External Affairs Minister S. Jaishankar, people familiar with the matter said.

India-Pakistan tensions escalate: India may challenge a proposed $1.3-billion International Monetary Fund (IMF) loan for Pakistan at the forthcoming board meeting of the global institution, according to three sources privy to the deliberations.
On May 9, the IMF board will evaluate a fresh $1.3-billion arrangement for Pakistan under its climate resilience loan programme. Additionally, it will assess the ongoing $7-billion bailout package, including the status of policy commitments.
“There is a view that support to terror by the neighbouring nation be flagged at the board meeting when the loan is taken up,” a source informed ET.
Pakistan and the IMF reached an agreement in July 2024 for a $7-billion package under the extended fund facility. The programme necessitated Pakistan to implement effective policies and reforms to enhance macroeconomic stability, tackle fundamental structural issues, and establish conditions for robust, inclusive and sustainable growth.
Also Read | With Indus Waters Treaty suspended, Modi government looks to expedite five major J&K hydroelectric power projects
The IMF is releasing the $7 billion in installments, and the board’s approval is essential for the next $1 billion tranche to be released.
Previously, India had abstained from casting its vote on the bailout package extended to its neighbour to bolster its struggling economy. In this instance, India might cast a negative vote against IMF assistance to Pakistan, citing fund misappropriation and technical reasons, another source indicated.
Following the terrorist attack in Pahalgam, India has implemented various measures against Pakistan, including suspending the Indus Waters Treaty with the neighbouring nation.
S Jaishankar, the external affairs minister, held discussions on Tuesday with his counterparts from seven non-permanent UN Security Council member nations. He is believed to have informed them about the cross-border connections to the April 22 terrorist incident that resulted in 26 civilian casualties.

At a jewellery shop in Basavangudi, in Bengaluru, on Akshaya Tritiya day, on April 30, 2025. File
| Photo Credit: The Hindu

“India’s gold demand witnessed a 15% on-year decline to 118.1 tonnes in the January-March quarter of this year, even as value grew by 22% to ₹94,030 crore owing to surging prices,” the World Gold Council (WGC) said on Wednesday (April 29, 2025.)

According to the WGC forecast, India’s gold demand for 2025 is expected to be between 700-800 tonnes. Gold prices have risen 25% since the beginning of 2025, approaching the key psychological threshold of ₹1,00,000 per 10 gm, affecting consumer buying patterns.

“The elevated prices have impacted affordability. Yet, the enduring cultural significance of gold, especially ahead of Akshaya Tritiya and the upcoming wedding season, continues to support buying sentiment,” WGC India CEO Sachin Jain said in its quarterly report.

According to experts, the gold market is humming with excitement on the auspicious occasion of Akshaya Tritiya, which holds immense cultural significance in India, traditionally marking a surge in gold purchases.

Record prices have pushed consumers towards smaller, lightweight pieces, with some postponing purchases hoping for price dips. Despite this, wedding-related demand remained relatively stable given its essential nature.

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“Experts believe, while the current price levels might prompt some to exercise caution, the inherent cultural significance of gold during Akshaya Tritiya, coupled with its enduring status as a reliable asset, suggests continued positive momentum in buying,” they added.

Investment demand, however, remained resilient with a 7% rise to 46.7 tonnes, from 43.6 tonnes in the corresponding period. Moreover, amid financial market uncertainty, gold’s role as a safe asset has become more pronounced, and got reflected in a sharp uptick in demand for gold bars and coins.

However, jewellery demand declined by 25% to 71.4 tonnes during the first quarter of 2025 calendar year, from 95.5 tonnes in the year-ago period. This was the lowest volume since 2020, though value was 3% higher year-on-year, according to WGC.

Gold imports rose 8% to 167.4 tonnes in the January-March quarter, while recycling fell 32% to 26 tonnes, as consumers held onto their gold amid record prices. The average quarterly gold price in the first quarter of this year was ₹79,633.4 per ten gram, compared to ₹55,247.2 in Q1 2024.

Meanwhile, global gold demand has increased 1% to 1,206 tonnes in the January-March quarter of 2025 — the highest first-quarter level since 2019.