The rupee depreciated by 36 paise to close at 87.31 against the U.S. dollar on Monday due to a strong dollar demand in the market owing to capital outflows. On Friday, the rupee appreciated 17 paise to close at 86.95 against the U.S. dollar.
During intra-day trade, the rupee had sunk 38 paise against the dollar, making its steepest single-day drop in a month as foreign portfolio investors (FPIs) are seen selling in the stock market and taking dollars away.
“The rupee weakened due to risk-averse sentiment and capital outflows. Concerns over a potential U.S. recession and Trump’s tariff policies put pressure on Asian currencies,” said Dilip Parmar, research analyst, HDFC Securities.
“In the short term, USD INR has a support level at 86.87 and a resistance level at 87.55. This week, traders will closely monitor CPI and trade data for key signals that could determine the future direction of the rupee,” he added.
Forex dealers said the RBI was seen intervening during the day to curb the volatility and minimise the fall.
The stock market witnessed volatility on Monday and the NSE Nifty-50 index closed with a loss of 0.41% at 22,460. The BSE Sensex also fell 0.29% to 74,115 led by selling in banking, auto and heavyweight stocks.
Published – March 10, 2025 09:33 pm IST
