The rupee surged 33 paise to close at 85.46 against the US dollar on Friday (March 28), marking its highest level in three months. Strong foreign fund inflows supported the rally despite pressure from weak domestic markets and a firm US dollar.

The rupee also recorded its biggest monthly gain in over six years, appreciating 2.17% in March, the highest since November 2018.

#CNBCTV18Market | #Rupee at a 3-month high, strengthens against the US Dollar pic.twitter.com/XINTqqP98B

— CNBC-TV18 (@CNBCTV18Live) March 28, 2025

However, the local currency has weakened over 2% in FY25, starting the financial year at 83.42 per dollar on April 2.

Foreign investors pumped over ₹32,000 crore into Indian markets in the past six trading sessions, boosting the rupee. However, month-end dollar demand from importers and oil marketing companies (OMCs) limited further gains.

At the interbank forex market, the rupee opened at 85.64, hit an intraday high of 85.40, and touched a low of 85.70 before settling at 85.46.

On Thursday (March 27), it had ended at 85.74, down 5 paise.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, expects the rupee to trade with a positive bias, supported by foreign inflows. However, elevated crude oil prices and month-end dollar demand may limit further appreciation.

The US dollar index edged 0.09% higher to 104.43, while Brent crude rose 0.16% to $74.15 per barrel. Indian equity markets ended lower, with the BSE Sensex down 191.51 points at 77,414.92 and the Nifty slipping 72.60 points to 23,519.35.

Foreign institutional investors (FIIs) bought ₹11,111 crore worth of Indian equities on Thursday, exchange data showed.

–With PTI inputs