Rupee Surges 31 Paise to 85.67 Against US Dollar, Recovers 2025 Losses Completely
The Indian rupee continued its strong recovery streak for the seventh consecutive session, surging by 31 paise to settle at 85.67 against the US dollar on Monday. This remarkable appreciation erased all of the rupee’s losses for 2025, driven by favorable domestic equity market trends, fresh foreign capital inflows, and a decline in global crude oil prices. Additionally, the weakening of the US dollar provided further support to the rupee’s upward momentum.
The rupee commenced trading at 85.93, fluctuated between an intraday high of 85.49 and a low of 86.01, before concluding the session at 85.67, marking a 31-paise gain compared to its previous close. Notably, on Friday, the rupee had surged by 38 paise, settling at 85.98, indicating a strong recovery phase. Over the past seven sessions, the rupee has gained 154 paise, successfully reclaiming its year-opening level of 85.64, recorded on December 31, 2024.
Market analysts attribute the rupee’s strength to multiple factors, including the aggressive dollar-selling activity by foreign banks and exporters ahead of the financial year-end, along with limited intervention by state-run banks. Dilip Parmar, Research Analyst at HDFC Securities, pointed out that foreign institutional investors’ (FIIs) renewed buying interest in domestic equities also played a crucial role in boosting the rupee’s performance. The positive sentiment surrounding the anticipated visit of a US representative to India further contributed to the currency’s resilience.
On the technical front, the spot USD/INR is expected to find support at 85.20 while facing resistance near 86.05, suggesting a potential consolidation phase in the near term. Meanwhile, the US dollar index, which measures the greenback’s performance against a basket of six major currencies, dipped by 0.09% to 103.99, adding downward pressure on the dollar. Brent crude, on the other hand, inched up by 0.54% to trade at USD 72.55 per barrel, yet remained at relatively lower levels, offering relief to import-heavy economies like India.
The stock market also witnessed a significant rally, with the 30-share BSE Sensex soaring by 1.40%, registering a 1,078.87-point gain to close at 77,984.38. Simultaneously, the Nifty 50 advanced by 1.32%, adding 307.95 points to settle at 23,658.35. The strong inflows from foreign institutional investors further bolstered market sentiment, as FIIs were net buyers of Indian equities worth Rs 7,470.36 crore on Friday.
Adding to the positive economic indicators, India’s foreign exchange reserves saw an increase of USD 305 million, reaching USD 654.271 billion for the week ending March 14, as per the Reserve Bank of India’s latest data. Meanwhile, foreign portfolio investors (FPIs) reduced their selling pressure, with outflows narrowing to Rs 1,794 crore (USD 194 million) last week, amid easing global concerns and growing optimism regarding a potential de-escalation in the ongoing Russia-Ukraine conflict.
With the rupee’s impressive recovery, investors and market participants remain optimistic about its stability in the near term. For more updates and video news, visit our YouTube channel THE OLIGO.
