Indian Rupee ends 35 paise stronger; Logs best winning streak in 13 months

Indian rupee closed stronger for the ninth consecutive session on Monday -- the longest winning streak since January 2024 -- amid signs of revival in foreign inflows and weakening US dollar. 

 

The domestic currency ended 35 paise stronger at 85.63 against the greenback after closing at 85.98 on Friday, according to Bloomberg data. The currency has appreciated by 1.9 per cent in March so far, tracking the fall in the dollar index. Meanwhile, during the current financial year, it witnessed a 2.2 per cent fall. 

 

The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was down 0.15 per cent at 103.92. The dollar index weakened 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, according to Amit Pabari, managing director at CR Forex Advisors.  The rupee strengthened past 85.70 as the dollar struggled to stay above 104, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "Additionally, expectations of Russia-Ukraine truce talks have kept market liquidity active, further supporting the rupee's momentum." 

 

 

 

If the dollar remains below 104 and foreign institutional investors (FII) inflow continues, the rupee could inch towards the 85.00 zone this week, Trivedi said. "The next resistance levels are at 85.10-85.25, while support is seen at 85.85-86.00." FIIs 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. 

 

The currency has decisively broken below the 86.00 mark, with the potential to test strong support at 85.80 in the near term, Pabari noted. However, sustained liquidity deficits and the Reserve Bank oif India's 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."

 

Crude oil prices rose slightly lower as traders assessed the impact of the upcoming reciprocal tariff impact. Brent crude oil was up 0.53 per cent to $72.54 per barrel, while WTI crude was up 0.60 per cent at 68.69 per barrel as of 3:40 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.