Rupee rises 9 paise to 87.28 against U.S. dollar in early trade

Rupee gains against dollar on strong macroeconomic data, equity market recovery, and RBI's liquidity injection.

The rupee appreciated 9 paise to 87.28 against the U.S. dollar in early trade on Monday (March 3, 2025) as the American currency index retreated from elevated level and domestic equity markets indicated some recovery after firm macroeconomic data.

According to forex traders, withdrawal of foreign capital is expected to halt as the latest government data released on Friday (February 28, 2025) showed the country's economy grew by 6.2% in the October-December quarter, recovering sequentially from seven-quarter lows.

However, the volatility triggered by the U.S. tariff continued to linger, leading to an increase in crude oil prices and capping a sharp gain in the domestic currency, they said.

At the interbank foreign exchange, the rupee opened at 87.36 and gained further ground to 87.28 against the American currency, registering a gain of 9 paise from its previous close.

On Friday (February 28, 2025), the rupee fell 19 paise to settle at 87.37 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.34% lower at 107.19.

Brent crude, the global oil benchmark, rose 0.59% to $73.24 per barrel in futures trade.