Indian Rupee snaps nine-day rally, ends 17 paise lower at 85.77/$
The domestic currency closed 17 paise weaker at 85.77 against the greenback after closing at 85.63 on Monday, according to Bloomberg data
 "Indian Rupee snaps nine-day rally, ends 17 paise lower at 85.77/$")
The Indian rupee ended its nine-day winning streak on Tuesday as a slight increase in the dollar index and crude oil prices limited gains, even as foreign inflows into equities showed signs of revival.
The domestic currency closed 17 paise weaker at 85.77 against the greenback after closing at 85.63 on Monday, according to Bloomberg data. The nine consecutive days of gains for the currency marked the best winning streak since January 2024.
The Rupee has appreciated by 2.2 per cent in March so far, tracking the fall in the dollar index. Meanwhile, during the current financial year, it witnessed a 2 per cent fall. The bullish momentum in the Rupee is largely driven by strong foreign portfolio inflows, fuelled by the FTSE March review and robust domestic fundraising activity, according to Amit Pabari, managing director at CR Forex Advisors. "Adding to the momentum, Indian states are set to borrow 566.21 billion rupees ($6.59 billion) through a sale of bonds on Tuesday."
Given the current market dynamics, the currency is likely to find strong support around 85.40-85.50, with a potential rebound towards 86.50 levels, Pabari said.
Meanwhile, FIIs remained net buyers of ₹3,055.76 crore from Indian equities on Monday. Global funds have pulled out ₹1.39 trillion from domestic stocks so far this year. Rupee witnessed minor profit booking after a strong run-up in recent days, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "Despite strong FII buying figures supporting sentiment, today's capital market profit booking spilled over into currency markets."
The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was up 0.05 per cent at 104.31. The dollar index was weakened by 3.26 per cent in March, the highest since November 2022.
Crude oil prices advanced as investors weighed the impact of the US reciprocal tariff impact that will take effect from April 2. Brent crude oil was up 0.59 per cent to $73.43 per barrel, while WTI crude was up 0.55 per cent at 69.49 per barrel as of 3:20 PM IST. Meanwhile, global risk-on sentiments rose on reports that US President Donald Trump's tariff actions might be more focused than previously threatened.