Finance
On Monday, the Indian rupee rose for the ninth straight day, boosted by a rebound in foreign inflows and reduced crude oil prices.
Bloomberg figures show that the domestic currency began 4 paise higher at 85.94 against the US dollar, up from 85.98 on Friday. The rupee is on course to achieve its biggest winning streak since January 2024. So far in March, the currency has risen by 1.83 percent, matching the decline in the dollar index.
The currency has decisively broken below the 86.00 mark, with the potential to test strong support at 85.80 in the near term, Amit Pabari, managing director at CR Forex Advisors, noted. However, sustained liquidity deficits and Reserve Bank of India (RBI) interventions aimed at bolstering forex reserves could trigger a rebound towards 86.50–86.60 levels, he said. “Any uptick might present selling opportunities for traders, while a favourable shift in market conditions could propel the rupee towards the 85.50 mark.”
On Friday, foreign institutional investors made a net purchase of ₹7,470 crore in Indian stocks. Global funds have withdrawn ₹1.44 trillion from domestic markets this year.
As we approach the month end, quarter end, and year end, some demand should come from the dollar-rupee pair as the RBI may want to square up its positions, according to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. “The rupee which has gained in the last week by about 1.2 per cent is expected to consolidate its gains before we see the next move. The opening is around 85.95 today with a range of 85.80 to 86.30.”
The dollar index, which measures the value of the US dollar relative to a basket of foreign currencies, was up 0.02 percent to 104.109. The dollar index fell 3.26 percent in March, reaching its highest level since November 2022. Investors seeking protection amid economic uncertainty pushed treasury yields lower, limiting the dollar’s rise, according to Pabari.
Crude oil prices fell marginally as traders assessed the impact of the planned reciprocal tariffs beginning April 2. Brent crude oil down 0.39 percent to $71.88 per barrel, while WTI crude fell 0.37 percent to 68.03 per barrel as of 9:00 a.m. IST. Meanwhile, global risk-on sentiments rose on reports that US President Donald Trump’s tariff actions might be more focused than previously threatened.
Source: BS
