Rupee rises 12 paise to 86.25 against U.S. dollar in early trade

On March 19, 2025, the Rupee appreciated 19 paise to close at 86.37 against the U.S. dollar. File
| Photo Credit: The Hindu

The Rupee appreciated 12 paise to 86.25 against the U.S. dollar in early trade on Thursday (March 20, 2025), tracking positive domestic equities and the weakness of the American currency in the overseas market.

Forex traders said the Indian Rupee has staged a counterattack against external pressures, gaining support from strong foreign inflows into debt markets. However, risks remain owing to unabated Foreign Institutional Investor (FII) sell-off and uncertainty surrounding U.S. President Donald Trump’s tariff stance could pose challenges to the Rupee’s upward momentum.

At the interbank foreign exchange, the Rupee opened at 86.39 against the greenback, then gained some ground and touched 86.25, up 12 paise from its previous close. On Wednesday (March 19, 2025,) the Rupee appreciated 19 paise to close at 86.37 against the U.S. dollar.

“The USD-INR pair is expected to trade between 86 and 86.80 in the near term. With FII outflows and liquidity deficit conditions persisting, a slight rebound towards the 86.50-86.60 range is likely,” CR Forex Advisors Managing Director Amit Pabari said.

Meanwhile, the U.S. dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% lower at 103.38. Brent crude, the global oil benchmark, was trading 0.58% higher at $71.19 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex was trading 445.32 points or 0.59%, higher at 75,894.37 points while the Nifty was up 131.75 points or 0.58% at 23,039.35 points. Foreign institutional investors offloaded equities worth ₹1,096.50 crore on a net basis on Wednesday (March 19, 2025), according to exchange data.

Meanwhile, the RBI March Bulletin released on Wednesday (March 19, 2025) said sound fiscal policies, a well-calibrated monetary framework and digital transformation initiatives are expected to provide a strong foundation for long-term sustainable economic growth.

It also said that macroeconomic fundamentals remain strong and economic growth is poised to sustain momentum driven by robust domestic demand, steady investment activity, and ongoing policy-driven infrastructure development along with a pick-up in government spending.