- Indian Rupee (INR) rises further, adding to gains last week
- USD inflows related to inter-company borrowing & fiscal year-end
- US Dollar (USD) rises against its major peers
- US services PMI jumps to 54.3
The US dollar-to-Indian rupee (USD/INR) exchange rate is falling at the start of the week. The pair fell 1.09% in the previous week, settling on Friday at 86.93. At 18:030 UTC USD/INR trades -0.49% lower at 85.56 and is in a range of 85.49 to 86.04.
The Indian Rupee is rising strongly to a three-month high as it erases all losses from 2025. The Rupee found strength from persistent dollar sales from local banks. The Rupee has pushed higher across most of the past nine trading days as the currency benefited from USD inflows related to intercompany borrowings and the repatriation of corporate earnings, which is typical in March, the end of the Indian fiscal year.
Inflows into Indian stocks and bonds have also helped to lift the Rupee, which recovered from a record low just a few weeks earlier. Around $3 billion entered Indian bonds in March alone.
The rupee is also gaining amid a risk-on mood in the markets and expectations that President Trump will apply narrower trade tariffs than initially feared. The
The US Dollar is rising against its major peers. The US Dollar Index, which measures the greenback against a basket of major currencies, is rising 0.3% on Monday to 104.39, marking a fourth straight day of gains.
The USD is rising as it extends its recovery from a 5-month low after upbeat business activity data. The US service sector PMI rose to 54.3 in March, well ahead of the 51.2 that economists had expected and a significant improvement from last month’s 51. The high number pointed to a robust expansion of activity in the sector, the largest sector of the US economy.
The data helped ease recession fears, which had pulled the USD to a 5-month low earlier this month.