Indian Rupee opens stronger at 85.71/$; Set for 2.5% drop in FY25

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The Indian Rupee opened stronger against the Dollar on the last trading day of the current financial year 2025, as revival of foreign inflows capped the rise in dollar and crude oil prices. 

 

The domestic currency opened 7 paise stronger at 85.71 against the greenback after closing at 85.79 on Thursday, according to Bloomberg data. The currency has appreciated by 2.13 per cent in March so far, tracking the fall in the dollar index. Meanwhile, during the current financial year, it witnessed a 2.6 per cent fall. 

 

The Indian rupee stumbled on Thursday due to mounting global uncertainties and robust month-end dollar demand from importers, according to Amit Pabari, managing director at CR Forex Advisors. "The currency’s slide was worsened by escalating trade tensions and a rally in crude oil prices." Given India’s heavy reliance on oil imports, the rise in crude prices amplified concerns over the country’s trade deficit, further weighing on the rupee. 

 

Further, a stronger-than-expected US GDP growth at 2.4 per cent supported the dollar index, intensifying the downward pressure on the rupee. The dollar surged to a three-week high following Trump’s auto tariff announcement on Thursday. The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was down 0.07 per cent at 104.26. The dollar index was down by 3.26 per cent in March, the highest since November 2022.  

 

Over the past six sessions, foreign investors have pumped over ₹32,488.6 crore into Indian equities. Global funds have pulled out ₹1.24 trillion from domestic stocks so far this year. 

 

Given the current global and domestic market dynamics, the dollar-rupee pair is likely to find strong support in the 85.40-85.50 range, Pabari said. "On the upside, 85.90 will serve as a key resistance level, and a breakout above this could open the path toward 86.40-86.50."

 

"For the day, we expect a range of 85.60/86.00 as we close today the week, month, quarter and year," Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. There is a host of data to be released on Monday which is otherwise a holiday, he added.  

 

Crude oil prices fell amid Trump threatening tariffs on countries purchasing oil and gas from Venezuela. Brent crude oil was up 0.05 per cent to $74.07 per barrel, while WTI crude was up 0.07 per cent at 69.97 per barrel as of 9:00 AM IST.