Rupee Gains 17 Paise to ₹86.19 Against US Dollar Amid Positive Market Sentiment

The Indian rupee appreciated by 17 paise to ₹86.19 against the US dollar in early trade on Friday, March 21, 2025. This gain was supported by positive domestic equity market performance and strong foreign fund inflows, signaling renewed investor confidence in the Indian economy.

Key Drivers of Rupee's Appreciation

Foreign Institutional Inflows

Foreign institutional investors (FIIs) turned net buyers for the second time this week, injecting over ₹3,200 crore into Indian equities and ₹5,500 crore into debt markets on Thursday. This inflow was driven by India’s attractive real yield of 3.028%, which remains higher than many global peers.

Domestic Equity Market Strength

The BSE Sensex climbed by 158.79 points (0.21%) to trade at 76,506.85, while the Nifty gained 74.40 points (0.32%) to reach 23,265.05 during early trading hours. Strong performances in banking and energy stocks bolstered market sentiment, further supporting the rupee.

Global Cues

Despite volatility in global markets due to the US Federal Reserve's recent policy updates, the rupee gained strength as Brent crude oil prices remained stable at USD 72.32 per barrel (+0.44%). A relatively weaker US dollar index, which was trading at 103.98 (+0.13%), also contributed to the rupee’s upward movement.

Market Outlook

Forex experts predict that the USD-INR pair will trade within a range of 86.00 to 86.80 in the near term, with a potential rebound toward the ₹86.50 - ₹86.60 range due to global headwinds and market dynamics.

Conclusion

The rupee’s appreciation reflects positive domestic economic conditions and improved investor sentiment driven by strong FII inflows and stable global commodity prices. However, market participants remain cautious amid ongoing global uncertainties.

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here