Representative image | Photo Credit: Reuters
The rupee shocked its three-day rally and settled on Thursday (March 6, 2025) on the US dollar on 87.12 (provisional) with a loss of 6 money and settled uncertainty between the outflow of foreign funds and frequent foreign funds.
According to Forex traders, investors carried forward carefully, waited for the announcement of data on weekly unemployment claims from the US and the announcement of monetary policy by the European Central Bank.
While a positive equity market was a loss to the local unit in the foreign market weakness in the foreign market and reduced crude oil prices.
In early trade, the local currency gained momentum after the delay in implementation of high tariffs on Canada and Mexico, and the RBI’s decision to infect the 1.9 trillion liquidity in the banking system.
In interbank foreign currency, the rupee opened strong at 86.96 and touched a high level of 86.88 against Greenback during the day. The unit later became unstable and hit the lowest of the day of 87.16 before finishing the session at 87.12 (provisional) against the dollar, lower 6 money from its previous closing level.
On Wednesday (March 6, 2025), the rupee finished 13 money high at 87.06 against the US dollar, acquiring the third straight day. In the previous two sessions, the unit received 18 money.
Mirae Asset Challekhan’s research analyst Anuj Chaudhary said the rupee lost the initial profit and fell against the US dollar on selling pressure by FIIS, while the US currency fell at a four -month low as the US decided to delay in implementing high tariffs on imports from Canada and Mexico.
Mr. Chaudhary further said that the rupee is expected to trade with a little positive bias on positive domestic markets and weakness in US dollars. However, the outflow of FII can get sharp benefits in the local unit.
He said, “Uncertainty on trade tariff issues can also weigh the rupee. The decision of traders US and ECB Monetary Policy may indicate the data of weekly unemployment claims. The USD-inch spot price is expected to trade within the range of 86.80 to 87.25.”
Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, was trading less than 0.15% at 104.12.
Global Oil Benchmark Brent crude, rose 0.39%, but at a six -month low of $ 69.57 per barrel in futures trade.
In the domestic equity market, the 30-cheer BSE Sensx increased by 609.86 points or 0.83%, settling at 74,340.09, while the Nifty closed 207.40 points, or 0.93%, at 22,544.70 points. Both indices closed the session on Wednesday (March 5, 2025) with a profit of more than 1%.
According to exchange data, foreign institutional investors (FII) on Wednesday (March 5, 2025) launched the price of 2,895.04 crores on a net basis.
The Reserve Bank said on Wednesday (March 5, 2025) that it would organize an open market purchase of government securities and will swap USD/INR with around ₹ 1.9 lakh crore during the month.
On 28 February, the Central Bank organized a US $ 10 billion-rupa swap to inject long-term liquidity in the system, with a strong demand for auction.
Meanwhile, US President Donald Trump has given a one -month exemption on its harsh new tariffs on imports from Mexico and Canada for American vehicle manufacturers, which can crush the newly launched trade war domestic manufacturing amidst the concern. The day came to a halt a day after Mr. Trump spoke with the leaders of ‘Big 3’ automakers, Ford, General Motors and Stelanis.
Published – March 06, 2025 04:32 pm IST
