New Delhi, July 3 -- The US dollar has plunged to more than three year low and a prolonged phase of its weakness is setting the stage for a potential rally in Emerging Markets, including the Indian stock market. A softening dollar, easing oil prices, and India's robust domestic fundamentals can support further gains in the benchmark Nifty 50 during the second half of 2025, analysts said.

The US Dollar Index (DXY) has declined 10% year-to-date (YTD) and currently stands around 96.70 - its lowest in over three years. Elara Capital expects the DXY to remain in the 95-99 range over the next two quarters, with an average of 100 for CY25, sharply lower than the 105 projected earlier this year. This signals a supportive global liquidity environ...