Indian Rupee Opens Stronger at 85.71/$ but Set for 2.6% Fall in FY25
The Indian Rupee opened stronger against the Dollar on the final trading session of the ongoing financial year 2025, as foreign inflows' revival kept the increase in dollar and crude oil prices in check.
The domestic currency opened 7 paise higher at 85.71 against the dollar after settling at 85.79 on Thursday, as per Bloomberg data. The currency has gained 2.13 per cent in March till date, following the decline in the dollar index. In the meantime, in the current financial year, it saw a 2.6 percent decline.
The Indian rupee fell on Thursday, under pressure from increasing global uncertainties and strong month-end demand for dollars from importers, said Amit Pabari, managing director at CR Forex Advisors. "The currency's decline was compounded by increasing trade tensions and an upsurge in crude oil prices". With India heavily dependent on imports of oil, the increase in crude prices fueled worries over the country's trade deficit and added to the pressure on the rupee.
Additionally, a more-than-expected US GDP growth at 2.4 per cent boosted the dollar index, which increased the rupee's downward pressure. The dollar rallied to a three-week high after Trump's auto tariff declaration on Thursday. The dollar index a gauge of the US dollar against a basket of other currencies was down 0.07 per cent at 104.26. The dollar index declined 3.26 per cent in March, the highest since November 2022.
Foreign investors have infused more than Rs 32,488.6 crore in Indian equities in the last six sessions. Global funds have withdrawn ₹1.24 trillion from domestic stocks until now.
With the prevailing global and domestic market conditions, the dollar-rupee pair is expected to get good support in the 85.40-85.50 zone, Pabari added. "On the higher side, 85.90 will be a crucial resistance level, and a break above this can pave the way towards 86.40-86.50".
"For the day, we expect a range of 85.60/86.00 as we close today the week, month, quarter and year", said Anil Kumar Bhansali, executive director and head of treasury at Finrex Treasury Advisors LLP. A myriad of data is due for release on Monday which otherwise is a holiday, he said.
Crude oil prices declined as Trump threatened tariffs against nations buying oil and gas from Venezuela. Brent crude oil was 0.05 per cent higher at $74.07 a barrel, while WTI crude was 0.07 per cent higher at 69.97 a barrel at 9:00 AM IST.
