Rupee rises 18 paise to 85.56 against U.S. dollar in early trade

Rupee strengthens against US dollar due to foreign fund inflows, but global trade concerns limit gains.

The rupee appreciated 18 paise to 85.56 against the U.S. dollar in early trade on Friday (March 28, 2025), as sustained foreign fund inflows provided support to the local unit.

Forex dealers said over the past four days, foreign investors have pumped over $2 billion into Indian equities, while month-to-date inflows into Indian bonds have exceeded $3 billion.

However, sharp upside for the local unit was restricted as investors grappled with the potential economic impact of growing global trade concerns.

At the interbank foreign exchange, the rupee opened at 85.64 against the greenback, then touched 85.56, up 18 paise from its previous close.

On Thursday (March 27, 2025), the rupee had weakened by 5 paise to close at 85.74 against the U.S. dollar.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, the USD/INR pair is expected to trade in a range of 85.60/86 as today's session will be the last session of the week, month, quarter and year.

"There is a host of data to be released on March 31, which is otherwise a holiday, particularly the current account data of the last quarter. Exporters wait for better levels to sell," he added.