Rupee rises 25 paise to 86.80 against U.S. dollar in early trade

Rupee strengthens against dollar as equities rise, Asian currencies remain strong; market awaits RBI intervention and oil price movements.

The rupee appreciated 25 paise to 86.80 against the U.S. dollar in early trade on Monday (March 17, 2025), as domestic equities opened on a higher note and Asian currencies continued to remain on the stronger side.

Forex traders said the rupee could extend its gains in the near-term, as the dovish Fed expectation has pressured the greenback, further aiding the rupee’s recovery.

However, global risk sentiment and oil price movements will play a crucial role in determining the next leg of the rupee's trajectory.

At the interbank foreign exchange, the rupee opened at 86.90 against the greenback, then gained some ground and touched 86.80 against the greenback, up 25 paise from its previous close.

On Thursday, the rupee surged 17 paise to settle at 87.05 against the U.S. dollar.

Forex, stock markets were closed on Friday on the occasion of Holi festival.

"The USD/INR pair is expected to trade within the 86.80-87.40 range in the near to medium-term. A breakout beyond this band could trigger an additional move of 30-50 paise in the same direction, keeping market participants on high alert for potential volatility," CR Forex Advisors MD Amit Pabari said.