Rupee Weakens 8 Paise to Close at 85.77 Against U.S. Dollar
Mumbai, March 27 – The Indian rupee fell 8 paise to settle at 85.77 per U.S. dollar on Thursday, pressured by month-end demand for the greenback from importers and a recovery in the U.S. currency against major global peers.
The dollar gained strength after U.S. President Donald Trump announced a 25% tariff on automotive imports, set to take effect on April 2. The move fueled concerns over potential retaliatory measures, weighing on market sentiment and liquidity, forex dealers said.
At the interbank foreign exchange market, the rupee opened at 85.90 and moved between an intraday high of 85.73 and a low of 85.93 before settling at 85.77, down from its previous close of 85.69.
“The rupee is expected to trade with a slight negative bias on month-end dollar demand from importers and oil marketing companies (OMCs). Elevated crude oil prices and a stronger U.S. dollar may also pressure the local unit. However, strong domestic equities and foreign institutional investor (FII) inflows could offer some support,” said Anuj Choudhary, a research analyst at Mirae Asset Sharekhan. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, edged down 0.11% to 104.43.
In the commodities market, Brent crude futures slipped 0.46% to $73.45 per barrel, adding to downward pressure on risk assets. Indian equities ended higher, with the benchmark 30-share BSE Sensex rising 317.93 points, or 0.41%, to close at 77,606.43. The broader NSE Nifty gained 105.10 points, or 0.45%, to settle at 23,591.95.
Foreign institutional investors remained net buyers in domestic equities, purchasing shares worth 2,240.55 crore rupees ($263 million) on Wednesday, according to exchange data.
