Rupee rises 1 paisa to close at 86.36 against U.S. dollar

Indian rupee strengthens against the US dollar, supported by strong domestic equities and foreign inflows, despite potential risks.

The rupee stayed firm and appreciated 1 paisa to close at 86.36 (provisional) against the U.S. dollar on Thursday (March 20, 2025) supported by positive domestic equities.

Forex traders said the Indian rupee has staged a counterattack against external pressures, gaining support from strong foreign inflows into debt markets.

However, risks remain due to unabated foreign institutional investor sell-off, and uncertainty surrounding Trump’s tariff stance could pose challenges to the rupee’s upward momentum.

At the interbank foreign exchange, the rupee opened at 86.39 then touched an intraday high of 86.20 and a low of 86.41 against the greenback. The unit ended the session at 86.36 (provisional) against the dollar, registering a gain of 1 paisa from its previous closing level.

On Wednesday (March 19, 2025), the rupee appreciated 19 paise to close at 86.37 against the U.S. dollar.

This is the fifth straight session of gain for the rupee, during which it has added 87 paise.

Forex traders further said Federal Reserve Chair Jerome Powell has made it clear that the U.S. central bank is prepared to keep rates elevated if inflation remains stubborn and the cautious stance suggests that while rate cuts are on the horizon, the Fed will remain data-dependent — leaving room for surprises.