Indian Rupee opens stronger at 85.94/$, gains for ninth straight session

Indian rupee strengthened for the ninth consecutive session on Monday amid revival of foreign inflows and lower crude oil prices. 

 

The domestic currency opened 4 paise stronger at 85.94 against the greenback after closing at 85.98 on Friday, according to Bloomberg data. The Rupee is on track to log the best winning streak since January 2024. The currency has appreciated by 1.83 per cent in March so far, tracking the fall in the dollar index.  

The currency has decisively broken below the 86.00 mark, with the potential to test strong support at 85.80 in the near term, Amit Pabari, managing director at CR Forex Advisors, noted. However, sustained liquidity deficits and Reserve Bank of India (RBI) interventions aimed at bolstering forex reserves could trigger a rebound towards 86.50–86.60 levels, he said. "Any uptick might present selling opportunities for traders, while a favourable shift in market conditions could propel the rupee towards the 85.50 mark."

 

Foreign institutional investors remained net buyers of ₹7,470 crore from Indian equities on Friday. Global funds have pulled out ₹1.44 trillion from domestic stocks so far this year.  

 

As we approach the month end, quarter end, and year end, some demand should come from the dollar-rupee pair as the RBI may want to square up its positions, according to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. "The rupee which has gained in the last week by about 1.2 per cent is expected to consolidate its gains before we see the next move. The opening is around  85.95 today with a range of 85.80 to 86.30." 

  The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was up 0.02 per cent at 104.109. The dollar index was down by 3.26 per cent in March, the highest since November 2022. Investors seeking safety amid economic uncertainties, drove treasury yields lower, thereby capping the dollar’s strength, Pabari said. 

 

Crude oil prices was slightly lower as traders assess the impact of the upcoming reciprocal tariff from April 2. Brent crude oil was down 0.39 per cent to $71.88 per barrel, while WTI crude was down 0.37 per cent at 68.03 per barrel as of 9:00 AM IST. Meanwhile, global risk-on sentiments rose on reports that US President Donald Trump's tariff actions might be more focused than previously threatened.