Rupee recovers its 2025 losses; jumps 31 paise to close at 85.67 against U.S. dollar

Rupee strengthens against the dollar, wiping out 2025 losses, supported by equity market trends and foreign capital inflows.

Rising for the seventh straight session, the Rupee appreciated 31 paise to close at 85.67 (provisional) against the U.S. dollar on Monday (March 24, 2025), wiping off all its losses in 2025, supported by a positive trend in domestic equity markets and fresh foreign capital inflows.

“Besides, lower global crude price levels and continuing weakness in the greenback also bolstered sentiments. However, lurking risks — ranging from liquidity constraints to reciprocal tariff implementations — continue to pose challenges for the local unit,” traders said.“

At the interbank foreign exchange, the Rupee opened at 85.93, then touched an intraday high of 85.49 and a low of 86.01 against the greenback. The unit ended the session at 85.67 (provisional), registering a gain of 31 paise from its previous closing level. On Friday (March 21, 2025), the Rupee appreciated 38 paise to close at 85.98 against the U.S. dollar.

This is the seventh straight session of gain for the Rupee, during which it has added 154 paise. The local unit has recovered all its losses for 2025. On December 31, 2024, the Rupee closed at 85.64 against the greenback.

"The Indian Rupee recouped yearly losses as foreign banks and exporters sold the dollars ahead of the financial year-end adjustment, while State-level banks remained aside from buying amid the RBI’s USD/INR swap," Dilip Parmar, Research Analyst, HDFC Securities, said.

Mr. Parmar further noted that the sentiments turned positive ahead of the U.S. representative visiting India ahead of April 2, reciprocal tariff implementations. Moreover, the foreign funds buying in domestic equities also well supported the Rupee.

“In the near term, the spot USD/INR is having support at 85.20 and resistance at 86.05,” he noted. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.09% lower at 103.99.