The Indian Rupee logo is seen inside the Reserve Bank of India (RBI) headquarters in Mumbai.
| Photo Credit: REUTERS
The rupee appreciated 18 paise to 85.56 against the U.S. dollar in early trade on Friday (March 28, 2025), as sustained foreign fund inflows provided support to the local unit.
Forex dealers said over the past four days, foreign investors have pumped over $2 billion into Indian equities, while month-to-date inflows into Indian bonds have exceeded $3 billion.
However, sharp upside for the local unit was restricted as investors grappled with the potential economic impact of growing global trade concerns.
At the interbank foreign exchange, the rupee opened at 85.64 against the greenback, then touched 85.56, up 18 paise from its previous close.
On Thursday (March 27, 2025), the rupee had weakened by 5 paise to close at 85.74 against the U.S. dollar.
According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, the USD/INR pair is expected to trade in a range of 85.60/86 as today’s session will be the last session of the week, month, quarter and year.
“There is a host of data to be released on March 31, which is otherwise a holiday, particularly the current account data of the last quarter. Exporters wait for better levels to sell,” he added.
Moreover, global risk sentiment got affected as escalating trade tensions resurfaced after U.S. President Donald Trump signed an order imposing 25% tariff on auto imports.
Meanwhile, the U.S. dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% lower at 104.30.
Brent crude, the global oil benchmark, was trading 0.08% lower at $73.97 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex was trading 165.16 points, or 0.21%, lower at 77,441.27 points, while the Nifty was down 41.55 points, or 0.18%, at 23,550.40 points.
Foreign institutional investors (FIIs) purchased equities worth ₹11,111.25 crore on a net basis on Thursday, according to exchange data.
Published – March 28, 2025 11:39 am IST
