Currency drivers: Rupee gains in March, outlook tied to US policy

The US policy outlook, particularly on the trade front, remains uncertain, with implications for global currency markets

The rupee gained against the dollar for nine straight trading sessions before giving up some gains on Tuesday. It has gained about 2 per cent in March and has been among the best-performing currencies in Asia. Nonetheless, it has lost about 3 per cent against the dollar this financial year, which will end next week. The currency has been somewhat volatile in recent months. In 2025, the rupee lost over 2 per cent until February but has nearly recovered the ground lost since. Currency-market volatility is driven largely by the movement in the United States dollar index, which itself has