Indian rupee posts best day in over three weeks, appreciates over 30 paise at close

rupee

Indian rupee on March 5 appreciated over 30 paise at close and posted its best day in terms of appreciation in over three weeks.

The local currency ended at 86.9675 against the US dollar, as compared to 87.2700 against the greenback at previous closing session. The local currency posted a highest gain since February 11, 2025, when it had appreciated around 65 paise.

“Constant custodial flows ensured Rupee which started at a low of 87.23 cumulated the day at 86.9550 which paves the way for it to go towards 86.50 and if there is no further escalation in trade tariff wars, possibly towards 86.00 in the month of March-25,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.

Further, easing dollar index also helped Indian rupee to recover sharply during the day.

The dollar index, which measures American currency's value against six major global peers, fell to 105.061 at close as compared to 105.743 at close in the previous trading session. Dollar index has eased from 106.743 on Monday.

Dollar index has eased amid concerns over slowing growth and the impact from tariffs on the US economy outweighed any potential boost from the ramping up of levies on Canada, Mexico and China.

Adding to the dollar's weakness were dovish remarks from Federal Reserve official as he acknowledged the growing economic uncertainty and stated that the Fed’s monetary policy is currently restrictive and could be adjusted as needed, reinforcing market expectations of a potential further rate cuts further weighed on the greenback, Amit Pabari, managing director at CR Forex Advisors said.