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Foreign investors have been buying heavily into Indian debt and equities. FPIs turned net buyers for the second time this week.
By Anshul March 21, 2025, 12:27:31 PM IST (Updated)
The rupee is on track for its best weekly gain since January 2023, rising 1% against the US dollar over the last five sessions. Strong foreign inflows and positive domestic equities have fueled the rally.
On Friday (March 21), the rupee appreciated 17 paise to 86.19 against the US dollar. It opened at 86.26 at the interbank forex market before strengthening further.
Foreign investors have been heavy buyers in Indian markets. FIIs purchased ₹3,239 crore in equities on Thursday and injected ₹5,500 crore into debt, supported by India’s high real yield of 3.028%.
Amit Pabari, MD at CR Forex Advisors, said the rupee has reacted to the US Fed’s stance but remains strong due to sustained FII inflows.
He expects the dollar-rupee pair to trade between 86.00 and 86.80 in the near term.
Meanwhile, the US dollar index edged up 0.13% to 103.98. Brent crude traded 0.44% higher at $72.32 per barrel.
Domestic equities also remained firm, with the Sensex rising 159 points to 76,507 and the Nifty climbing 74 points to 23,265.
First Published:
Mar 21, 2025 11:15 AM
IST
