Rupee v/s Dollar, 10th March, 2025: Rupee plunges 30 paise to ₹87.25

The Indian rupee plunged 30 paise to ₹87.25 against the US dollar in early trade on Monday, March 10, 2025. The move came late as the American currency started to recover from a six-month low and trade-related uncertainty weighed on investor sentiment.

Regular Market Movement & Intra-day Opening

The rupee began the day on the back foot at the interbank foreign exchange, trading at 87.24 versus the greenback with large swings. It touched a low of ₹87.34 during the early deals before settling at ₹87.25. This is 30 paise lower than its previous level.

The Factors Putting Pressure On The Rupee

There evolved a chain of events leading to the rupee depreciation. These factors include a lackluster domestic equity market and an uninterrupted foreign fund outflow. Easing crude oil prices also lent some support to the local unit, forex traders said.

Performance of Domestic Equity Markets

In the domestic equity market, the 30-share BSE Sensex was up 0.18 per cent at 74,465.97 points, and the Nifty was up 0.15 per cent at 22,586.55 points.  Both indexes had ended nearly unchanged on Friday after sharp gains the previous two sessions.

Foreign Fund Outflow And Forex Reserves

On Friday, the net selling of shares by foreign institutional investors (FIIs) amounted to ₹ 2,035.10 crore, according to exchange data. The RBI's most recent data, released Friday, showed the country's forex reserves declined to USD 638.698 billion in the week ending February 28, a drop of USD 1.781 billion. This came after an increase of USD 4.758 billion in the previous reporting week, when the forex kitty had stood at USD 640.479 billion.

Global Influences and the Dollar Index

The dollar index, which measures the strength of the US dollar with respect to a basket of other currencies, was up 0.03 per cent at 103.84. In contrast, the global oil benchmark, Brent crude, fell 0.58 per cent to USD 69.95 per barrel in futures trade. In US data released on Friday, Labour Department data showed firms hired more workers in February, though the unemployment rate edged up to 4.1 per cent.

Future Outlook and Concerns

Economists say the outlook for the future is cloudy, factoring in threats of a trade war from President Donald and potential purging of the federal workforce.

Disclaimer: This is not a recommendation to buy or sell a stock. 

To read the RA disclaimer, please click here