Rupee opened near three-months high on March 25 against the US dollar and erased all losses it has incurred throughout 2025.
The local currency opened at 85.58 against the US dollar, then traded at 85.64 against the US dollar, as compared to 85.64 against the greenback at previous trading session.
The current level of rupee was lowest since December 31, 2024, when it was trading at 85.61 against the US dollar.
The appreciation of rupee was despite the increase in dollar index in last two sessions. Currency experts said that the rise in rupee was attributed to foreign investors buying in domestic equities and bonds.
Amit Pabari, managing director at CR Forex Advisors said FIIs investing more than Rs 10,000 crore in the last 2 trading sessions, causing the nifty index to surge by over 5.5 percent in the last 6 trading sessions. These strong inflows have caused the total monthly FII flows to become positive, with the current month's positive FII inflows standing at $1.31 billion.
"The USDINR pair is likely to find strong support around 85.40-85.50, with a potential rebound towards 86.50 levels," Pabari added.
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