Rupee weakens 10 paise to ₹86.66 against US Dollar

On Wednesday, March 19, 2025, the Indian rupee weakened by 10 paise to trade at  ₹86.66 against the US dollar in early trade. This decline occurred at the interbank foreign exchange market. The rupee had opened weaker at  ₹86.60 and further slipped to  ₹86.68 before settling at  ₹86.66 against the greenback in the initial trading sessions. This registered a loss of 10 paise compared to its previous closing level.

Factors Contributing to Rupee's Weakening

The firm American currency index was cited as a primary reason for the rupee's decline. This strengthening of the dollar index occurred ahead of the US Federal Reserve's interest rate decision, which market participants were keenly awaiting for cues. Additionally, prevailing concerns due to global trade tariff moves also contributed to the weakness in the rupee. The US dollar index, which measures the dollar's strength against a basket of six currencies, was trading 0.09 per cent higher at 102.98.

Cushioning Factors for the Rupee

Despite the downward pressure, forex traders indicated that the local currency found some support due to easing crude oil prices. Brent crude, the global oil benchmark, was trading 0.27 per cent lower at USD 70.37 per barrel in futures trade. Furthermore, some inflow of foreign capital in domestic equity markets also provided a cushion to the rupee. On Tuesday, foreign institutional investors (FIIs) purchased equities worth  ₹694.57 crore on a net basis. 

Performance of Indian Equity Markets

In the domestic equity market, both the benchmark indices were trading in positive territory during the early trade. The 30-share BSE Sensex was up by 30.78 points, or 0.04 per cent, at 75,332.04 points, and the Nifty was higher by 12.95 points, or 0.06 per cent, at 22,847.25 points. Notably, both indices had concluded Tuesday's session with significant gains exceeding 1%.

Rupee's Recent Performance Trend

Prior to this decline, the rupee had shown strength. It settled 25 paise higher at  ₹86.56 against the US dollar on Tuesday, marking its third consecutive gaining session, during which it had collectively appreciated by 66 paise. On Monday, the unit had risen by 24 paise to close at  ₹86.81 against the US dollar, following a 17 paise gain in the preceding session on Thursday. The forex market was closed on Friday due to the Holi festival.

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