The Indian Rupee (INR) weakened on Tuesday after strengthening for nine consecutive sessions, despite continued US Dollar (USD) sales from foreign banks and a resurgence in foreign inflows.
The USD/INR exchange rate edged higher to 85.71, reflecting a 0.17% gain at 1:25 PM, as of March 25, 2025. The pair traded within a range of 85.54 to 85.83 during the session.
Indian government bond yields surged early Tuesday as states increased their borrowing to a record high. Indian states are set to borrow ₹746.55 billion ($8.71 billion), exceeding the scheduled amount by more than ₹200 billion.
Market sentiment was also influenced by former US President Donald Trump’s statement on upcoming automobile import tariffs.
He indicated that some countries might receive exemptions or reductions when these tariffs are formally announced on April 2.
Foreign institutional investors (FIIs) returning to buying mode also contributed to the rupee’s gains. FIIs were net buyers of ₹3,055.76 crore in Indian equities on Monday, marking their first net buying week of the year.
However, global funds have still withdrawn ₹1.39 trillion from domestic stocks in 2025, as per news reports.
The dollar index, which measures the USD against a basket of foreign currencies, rose slightly by 0.04% to 104.30. In March, it has weakened by 3.25%, marking its sharpest decline since November 2022.
Meanwhile, crude oil prices remained relatively steady as investors assessed the impact of US tariffs alongside increased purchases of oil and gas from Venezuela. Brent crude edged up 0.38% to $73.28 per barrel.
The Indian Rupee’s performance remains influenced by a mix of global and domestic factors, including crude oil price fluctuations, foreign inflows, and bond market activities. While the rupee has shown resilience, external trade policies and economic developments will continue to shape its trajectory in the coming weeks
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Mar 25, 2025, 1:39 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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