Rupee rises 25 paise to close at 85.49 against U.S. dollar

On March 27, 2025), the Rupee had weakened by five paise to close at 85.74 against the U.S. dollar. File
| Photo Credit: The Hindu

The Rupee appreciated 25 paise to close at 85.49 (provisional) against the U.S. dollar on Friday (March 28, 2025,) logging the best monthly gain in more than six years, supported by a resurgence of foreign fund inflows. In March 2025, the local unit appreciated 2.17%, the maximum since November 2018 when the local unit had registered a gain of more than 5%.

In the current financial year, the Rupee has depreciated more than 2%. On April 2, 2024 it was quoted at 83.42 against the U.S. dollar. Forex dealers said the domestic unit has witnessed significant appreciation supported by robust foreign fund inflows into the capital market. Foreign investors have infused more than ₹32,000 crore in the past six consecutive trading sessions.

However, sharp upside for the local unit was restricted by weak domestic markets and rising U.S. dollar. Moreover, investors also grappled with the potential economic impact of growing global trade concerns. At the interbank foreign exchange, the Rupee opened at 85.64 then touched an intraday high of 85.40 and a low of 85.70 against the greenback.

The unit ended the session at 85.49 (provisional) against the dollar, registering a gain of 25 paise from its previous closing level. On Thursday (March 27, 2025), the Rupee had weakened by five paise to close at 85.74 against the U.S. dollar.

“We expect the Rupee to trade with a positive bias on inflows by foreign investors. However, month-end dollar demand from importers and oil marketing companies (OMCs) and elevated crude oil prices may cap sharp upside,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

Mr. Choudhary further noted that “traders may take cues from core PCE price index data from the U.S. USD-INR spot price is expected to trade in a range of 85.15 to 86.70.” The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09% higher at 104.43. Brent crude, the global oil benchmark, rose 0.16% to $74.15 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex fell 191.51 points or 0.25% to settle at 77,414.92, while the Nifty declined 72.60 points or 0.31% to close at 23,519.35 points. Foreign institutional investors (FIIs) purchased equities worth ₹11,111.25 crore on a net basis on Thursday (March 27, 2025,) according to exchange data.