Forex traders noted that the Indian Rupee has pushed back against external pressures, bolstered by robust foreign investments in debt markets.

The Indian Rupee strengthened by 12 paise to reach 86.25 against the U.S. dollar in early trade on Thursday (March 20, 2025), driven by positive domestic market trends and a weaker American currency in global markets. According to forex traders, the Rupee has pushed back against external pressures, supported by strong foreign inflows into debt markets. However, persistent Foreign Institutional Investor (FII) sell-offs and uncertainty over U.S. President Donald Trump’s tariff policies could limit its upward momentum. At the interbank forex market, the Rupee opened at 86.39 against the dollar before gaining traction to settle at 86.25, marking a 12-paise increase from the previous close. On Wednesday (March 19, 2025), the currency had appreciated by 19 paise to end at 86.37 against the U.S. dollar. Amit Pabari, Managing Director of CR Forex Advisors, stated that the USD-INR pair is expected to fluctuate between 86 and 86.80 in the near term. With ongoing FII outflows and liquidity constraints, the Rupee may see a slight rebound toward the 86.50-86.60 range.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against six major currencies, dipped 0.04% to 103.38. Brent crude, the global benchmark for oil prices, rose by 0.58% to trade at $71.19 per barrel in the futures market.

On the domestic equity front, the 30-share BSE Sensex climbed 445.32 points (0.59%) to 75,894.37, while the Nifty surged 131.75 points (0.58%) to 23,039.35. Exchange data showed that foreign institutional investors offloaded equities worth ₹1,096.50 crore on a net basis on Wednesday (March 19, 2025).

Additionally, the Reserve Bank of India’s March Bulletin, released on Wednesday (March 19, 2025), highlighted that prudent fiscal policies, a well-structured monetary framework, and digital transformation initiatives are expected to support long-term economic stability.

The bulletin also noted that India’s macroeconomic fundamentals remain strong, with economic growth projected to sustain momentum due to robust domestic demand, steady investment activity, policy-driven infrastructure expansion, and increased government spending.