Rupee settles 26 paise higher at 86.55 against U.S. dollar

Indian Rupee notes are seen in this picture illustration taken in Mumbai.
| Photo Credit: REUTERS

The rupee appreciated for the third consecutive session and registered gains of 26 paise to close at 86.55 (provisional) against the U.S. dollar on Tuesday (March, 18, 2025) amid positive domestic equity markets and a weak American currency.

Forex traders said the U.S. dollar declined on disappointing economic data from the US. Moreover, the strength of the Asian currencies also supported the rupee. However, a surge in crude oil prices capped the gains.

At the interbank foreign exchange, the rupee witnessed high volatility. It opened at 86.71 then touched the intraday high of 86.54 and the low of 86.78 against the greenback.

The unit ended the session at 86.55 (provisional) against the dollar, registering a gain of 26 paise from its previous closing level.

On Monday (March 17, 2025), the rupee had appreciated 24 paise to close at 86.81 against the U.S. dollar. On Thursday (March 13, 2025) , the rupee surged 17 paise to settle at 87.05 against the U.S. dollar.

Forex market was closed on Friday (March 14, 202 on the occasion of Holi festival.

This is the third straight session of gain for the rupee, during which it has added 67 paise.

“We expect the rupee to trade with a positive bias on positive global equities and weak American currency. However, rising crude oil prices and FII outflows may cap sharp upside. Traders may take cues from industrial production and housing sector data from the U.S.,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

Investors may remain cautious ahead of the Federal Open Market Committee (FOMC) meeting, Choudhary said, adding that the USD-INR spot price is expected to trade in a range of 86.3 to 86.80.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04% lower at 103.32.

Brent crude, the global oil benchmark, rose 1.31% to $72 per barrel in futures trade.

On the domestic macroeconomic front, India’s trade deficit fell to a three-and-half-year low but the point of concern was exports contracting sharply, Bhansali said, adding that imports too witnessed the most significant decline in 20 months driven largely by a fall in oil imports and gold imports.

Additionally, U.S. President Donald Trump’s plan to impose broad reciprocal tariffs and sector-specific trade restrictions on April 2 could create further pressure on the rupee, traders said.

In the domestic equity market, the 30-share BSE Sensex surged 1,131.31 points, or 1.53%, to settle at 75,301.26, while the Nifty advanced 325.55 points, or 1.45%, to close at 22,834.30 points.

Foreign institutional investors (FIIs) offloaded equities worth ₹4,488.45 crore on a net basis on Monday, according to exchange data.