Representative image
| Photo Credit: Reuters
The rupee snapped its seven-session rally and settled with a loss of 13 paise at 85.74 (provisional) against the U.S. dollar on Tuesday, as increased demand for dollars from importers, coupled with the greenback’s recovery against major currencies, weighed on the rupee.
Forex traders said the Indian rupee halted its seven-day winning streak, reflecting a shift in market sentiment towards risk aversion.
However, mixed-to-positive domestic markets and foreign fund inflows cushioned the downside.
At the interbank foreign exchange, the rupee opened at 85.59 and touched a high of 85.58 against the greenback during the day. The unit later turned volatile and hit the day’s low of 85.84 before ending the session at 85.74 (provisional) against the dollar, 13 paise lower from its previous closing level.
On Monday (March 24, 2025), the rupee appreciated 37 paise to close at 85.61 against the U.S. dollar, wiping off all its losses in 2025. The domestic unit had added 154 paise in the last seven trading sessions.
“We expect the rupee to trade higher on foreign inflows and positive domestic equities. However, rising crude oil prices may cap sharp gains.
“Traders may take cues from CB consumer confidence, new home sale and Richmond manufacturing index data from the US. USD-INR spot price is expected to trade in a range of 85.50 to 86,” said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.02% at 104.24.
Brent crude, the global oil benchmark, rose 0.68% to $73.50 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex rose 32.81 points, or 0.04%, to settle at 78,017.19, while the Nifty gained 10.30 points, or 0.04%, to close at 23,668.65 points.
Foreign institutional investors (FIIs) purchased equities worth ₹3,055.76 crore on a net basis on Monday (March 24, 2025), according to exchange data.
Published – March 25, 2025 04:32 pm IST
