Weekly Round-up: Rupee Gains 24 Paise Against Dollar, Best Performance in Two Years

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.

Also Read: “Let Us Make Elephant, Dragon Dance”: China Calls for Stronger Ties With India Amid US Tariff War

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.

Tags:

#ForexMarket, #RupeeVsDollar, #USDINR, #IndianEconomy, #CurrencyMarkets, #DollarIndex, #RBI, #USFed, #MarketUpdate, #ExchangeRates