Rupee hits three-week high at 86.80 against US dollar

The Indian rupee closed at a three-week high on Monday, staying below the 87 mark as the US dollar weakened amid signs of a recovering domestic economy. The local currency strengthened by 20 paise to settle at 86.80 against the US dollar, its highest level since February 24. The rupee has now gained over 0.8 per cent in March, following five straight months of decline.

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said, “The rupee traded strong at 86.86 against the dollar, aided by a weaker dollar index and reduced capital outflows in recent days. Market participants are closely monitoring key US economic data, including retail sales and the Federal Reserve’s policy meeting this week.”  

Trivedi added that global cues will continue to influence rupee movement, which is expected to remain within the 86.20-86.90 range unless unexpected developments arise from US data or policy decisions.  

On Thursday, the rupee had strengthened by 17 paise to close at 87.05 against the dollar. Forex and stock markets were shut on Friday due to the Holi festival.  

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, fell 0.11 per cent to 103.60. Brent crude, the global oil benchmark, climbed 0.92 per cent to 71.23 dollars per barrel in futures trade.  

Also Read: Rupee climbs 25 paise to 86.80 vs US dollar

Sensex, Nifty bounce back

Meanwhile, Indian equity markets recovered on Monday, with the Sensex and Nifty snapping their losing streaks, driven by gains in banking, financial, and pharma stocks. Positive global cues and a rebound in mid- and small-cap stocks further lifted sentiment.  

Also Read:Final Trade: Sensex jumps 341 pts, Nifty tops 22,500; metal, pharma, auto lead gains

The Sensex surged 341.04 points, or 0.46 per cent, to close at 74,169.95, while the Nifty 50 advanced 111.55 points, or 0.50 per cent, to settle at 22,508.75. This marked a turnaround after the Nifty's two-day decline and the Sensex's five-day losing streak.  

Broader market indices also ended in the green, with the Nifty Midcap 100 rising 0.70 per cent and the Nifty Smallcap 100 gaining 0.48 per cent.