The Indian rupee has made a strong comeback against the US dollar, recovering all its losses for 2025. Supported by a rising domestic stock market and fresh foreign investments, the rupee strengthened for the seventh consecutive trading session on Monday. It closed at 85.61 per dollar, gaining 37 paise in one day.

Why is the Rupee Gaining?

Experts say the rupee’s rise is due to:
✅ Falling global crude oil prices
✅ Weakening US dollar
✅ Foreign investors buying Indian stocks

However, challenges remain, such as liquidity issues and possible counter-tariffs that could impact the currency’s strength.

Trading Highlights

📌 The rupee opened at 85.93 per dollar and fluctuated between 85.49 and 86.01 during the day.
📌 It ended at 85.61 per dollar, up from 85.98 on Friday.
📌 Last month, the rupee hit a record low of 87.59 per dollar before recovering.

Expert Views

HDFC Securities analyst Dilip Parmar said:

• Indian banks and exporters sold dollars to adjust for the financial year-end.
• The Reserve Bank of India (RBI) stayed away from large dollar-rupee swap purchases.
• Positive sentiment increased after news of a US trade representative visiting India before counter-tariffs take effect on April 2.

Market Impact

📉 The US Dollar Index (which measures the dollar against six major currencies) fell 0.09% to 103.99.
📈 Brent crude oil rose 0.54% to $72.55 per barrel.
📊 BSE Sensex jumped 1,078 points to 77,984, while Nifty rose 308 points to 23,658.
💰 Foreign investors (FIIs) bought ₹3,055.76 crore worth of Indian stocks on Monday.

With strong market support, experts believe the rupee may remain stable in the coming weeks.