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.