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The rupee declined 10 paise to 86.66 against the U.S. dollar in early trade on Wednesday (March 19, 2025) amid a firm American currency index ahead of the Federal Reserve’s interest rate decision and prevailing concerns due to global trade tariff moves.
Forex traders said the local currency found cushion due to easing crude oil prices and some inflow of foreign capital in domestic equity markets.
At the interbank foreign exchange, the rupee opened weak at 86.60 and fell to 86.68 before trading at 86.66 against the greenback in initial deals, registering a loss of 10 paise from its previous closing level.
Rupee settled 25 paise higher at 86.56 against the U.S. dollar on Tuesday, gaining for the the third straight session during which it added 66 paise.
The unit had appreciated 24 paise to close at 86.81 against the U.S. dollar on Monday after ending 17 paise up at 87.05 in the preceding session on Thursday.
Forex market was closed on Friday on the occasion of Holi festival.
Meanwhile, the U.S. dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.09% higher at 102.98.
Analysts said the dollar index showed a recovery as market participants were awaiting cues from the U.S. Federal Reserve’s interest rate decision to be announced on Wednesday.
Brent crude, the global oil benchmark, was trading 0.27% lower at $70.37 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex was trading 30.78 points, or 0.04%, higher at 75,332.04 points, while the Nifty was up 12.95 points, or 0.06%, at 22,847.25 points. Both the indices ended Tuesday’s session with sharp gains of more than 1%.
Foreign institutional investors (FIIs) purchased equities worth ₹694.57 crore on a net basis on Tuesday, according to exchange data.
Published – March 19, 2025 10:24 am IST
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