Rupee rises for 10th straight session; Opens 4 paise stronger at 85.59/$

The Indian rupee opened stronger for the 10th straight session on Tuesday, as renewed foreign inflows offset a slight rise in the Dollar Index and crude oil prices.

 

The domestic currency opened 4 paise stronger at 85.59 against the greenback after closing at 85.63 on Monday, according to Bloomberg data. The currency 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. 

 

Indian Rupee was on a roll yesterday and despite a rise in dollar index and fall in Asian currencies, the local unit opened higher, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, noted. "The rise in stock markets with foreign institutional investors (FIIs) back into buying mode has also caused the rise in the rupee."

 

Meanwhile, FIIs remained net buyers of ₹3,055.76 crore from Indian equities on Monday, after being net buyers on a weekly basis, the first this year. Global funds have pulled out ₹1.39 trillion from domestic stocks so far this year.  

 

The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was up 0.04 per cent at 104.30. The dollar index was weakened by 3.25 per cent in March, the highest since November 2022. 

 

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 ₹56,621 crore ($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. 

 

Crude oil prices were little changed as investors weighed the impact of US tariffs while various countries began buying oil and gas from Venezuela. Brent crude oil was up 0.07 per cent to $73.05 per barrel, while WTI crude was up 0.03 per cent at 69.13 per barrel as of 8:55 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.