Rupee Depreciates by 23 Paise to ₹85.84 in Early Trade

The rupee fell by 23 paise to ₹85.84 against the dollar on March 25. The fall can be attributed to heightened demand for the U.S. currency from the importers.

Experts said that positive global cues and FII inflows have helped the domestic currency at lower levels.

However, key challenges continue to remain as a stumbling block for the domestic currency amid liquidity constraints and possible repercussions of reciprocal tariffs.

The rupee opened at ₹85.59 against the greenback on the interbank foreign exchange, but lost its sheen later on to fall at ₹85.84, down 23 paise from its previous close. The domestic unit appreciated by 154 paise in the last seven trading sessions.

The US dollar index is trading at 104.3, up 0.05%, while Brent crude went up by 0.01% at 73.01 per barrel in futures trade.

Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP said that buying activity by Foreign Portfolio Investors (FPIs) also appreciated the rupee.

“As we approach the month-end, there could be a sharp fall in the rupee due to month-end positioning, unless the Reserve Bank of India has some other plans,” Bhansali said.

He added, “Exporters are waiting for better levels to hedge. However, if 85.50 breaks decisively then maybe we are approaching 84.75.”

On the equity markets front, Sensex was up by 0.88% at 78,668.14 points, while Nifty went up by 0.79%, at 23,844.25 points.

Foreign institutional investors (FIIs) purchased equities worth ₹3,055.76 crore on a net basis on March 24.