Rupee strengthens to ₹86.87 per USD as the dollar weakens; RBI intervention suspected after rupee dips below ₹87.20.
March 8, 2025: Rupee Gains 24 Paise Against Dollar, Best Weekly Performance in Two Years
Dollar Weakens Amid US Economic Concerns; Euro Surges to Multi-Month High
The Indian rupee ended the week on a strong note, closing at ₹86.87 against the US dollar, up 24 paise from the previous day’s ₹87.11. This marked the best weekly performance in over two years, with a 0.7% weekly rise, as the dollar weakened against major global currencies.
Key Factors Driving Rupee’s Gain
- The US dollar faced its worst weekly decline in over two years, amid concerns over a slowing US economy and uncertainty surrounding tariff policies.
- The euro surged to its highest level since November 2024 after the European Central Bank’s hawkish rate cut and rising German bond yields.
- Asian currencies gained modestly, rising between 0.1% and 0.4%, contributing to the rupee’s strength.
Also Read: Gold Prices Rise Amid US Trade Policy Uncertainty; India Sees Dip in Domestic Rates
RBI Intervention Suspected
According to forex dealers, the Reserve Bank of India (RBI) may have intervened in the market after the rupee dipped below ₹87.20 earlier in the session. The central bank has actively managed forex reserves to control volatility in the currency market.
Stock Market Performance & Investor Activity
- Sensex slipped 8 points to close at 74,333, while Nifty edged up by 7.8 points to 22,553.
- Foreign institutional investors (FIIs) net sold ₹2,377 crore in equities, according to exchange data.
Also Read: Sensex, Nifty 50 Log Biggest Weekly Gain of 2025; Banking Stocks Lag Behind
Upcoming Economic Events to Watch
- Investors are now awaiting commentary from US Fed Chair Jerome Powell and the US jobs data report.
- Economists forecast an unchanged US unemployment rate at 4%. A significant miss in job numbers could further weaken the dollar and impact market expectations.
With the rupee on an upward trend, market participants will keep a close eye on global economic indicators and RBI’s future forex interventions.
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