The Indian rupee closed 1 paisa higher at 86.36 against the US dollar on Thursday, supported by positive domestic equities. Forex traders mentioned that the rupee gained support from strong foreign inflows into debt markets, countering external pressures. However, risks still exist due to foreign institutional investor sell-off and uncertainties related to Trump’s tariff stance. The rupee opened at 86.39, hitting an intraday high of 86.20 and a low of 86.41 against the dollar, settling at 86.36 (provisional) by the end of the session, marking a gain of 1 paisa from the previous close. This marks the fifth consecutive session of gains for the rupee, adding a total of 87 paise during this period. Federal Reserve Chair Jerome Powell’s cautious stance on rate cuts and the dollar index trading higher at 103.90 also influenced the forex market. On the commodities front, Brent crude rose to $70.85 per barrel in futures trade. In the equity market, the BSE Sensex surged 899.01 points, while the Nifty closed at 23,190.65 points. Furthermore, the RBI March Bulletin highlighted the strong macroeconomic fundamentals and sustainable economic growth driven by robust demand, investment activity, and government spending.
