Indian Rupee Gains Further After Nine-Day Rally, Opens at 85.68 Against the Dollar

The Indian rupee was on the rise again on Wednesday, March 26, 2025 after opening at ₹85.68 per US dollar, up 5 paise from the previous session's close of ₹85.73. This is the continuation of the rupee catching up in reverse to all other currencies due to the positive outlook in domestic and global factors.

Critical Factors Underpinning the Rupee

FII (Foreign Institutional Inflows): Indian equities and debt markets have benefited from persistent foreign capital inflows, which have supported the rupee's strength. They've also been net buyers over the past few sessions, which indicates that they are confident of India's economy.

Weak Dollar Index: The dollar index, which measures the greenback against a basket of major currencies, was steady at 103.95, allowing emerging market currencies such as the rupee to gain.

Crude Oil Prices: Stabilizing crude oil prices have allayed fears of a higher import bill for India and lent further support to the local unit. Brent crude traded at $72.80 per barrel and WTI crude at $69.20 per barrel.

Positive Domestic Sentiment: Indian markets continue its bullish movement, trading higher in early sessions. Such optimism has helped strengthen the rupee.

Market Outlook

In the near term, forex analysts expect the USD-INR pair to trade in the range of ₹85.50 to ₹86.00 supported by healthy flows from outside the country and stable macroeconomic indicators. But traders were cautious ahead of key global economic data figures due out later in the week that could affect currency movements.

Conclusion

The rupee's rally today mirrors positive sentiment in the forex market, with robust foreign inflows earlier and steady crude oil prices. Amid global uncertainties, investors will be keeping an eye on developments to gauge where the currency headed next.

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