Rupee settles stronger at 87.37 as dollar weakens

The Indian rupee closed slightly stronger at 87.37 per US dollar, versus its previous close of 87.50, tracking an uptick in Asian currencies as the dollar index weakened, showed LSEG data.

The rupee moved in a narrow range of about 15 paisa and there did not seem to be significant intervention from the Reserve Bank of India (RBI), dealers said. The currency moved between 87.25/$1 and 87.40/$1.

The dollar index retreated 0.4% in Asian hours at 107.21, and most of the focus was on implementation of tariffs.


The currency is expected to be on a downward trend, but traders expect the RBI to intervene in March as the dollar-rupee pair approaches the 88/$1 mark.

“The RBI will most likely prevent the currency from breaching the 88 level this month, as it affects profitability of corporates,” a currency trader at a public sector bank said.

Persistent capital outflows also added pressure on the currency, as foreign portfolio investors sold Indian securities worth Rs 4,788 crore on Monday, NSE data showed.

The Indian currency dropped 1% in February, logging its fifth straight monthly loss.

Traders will be tracking the US non-farm payroll data due to be published Friday after market hours in India, which would help gauge the interest rate trajectory in the US. This would come amid a backdrop of concerns the world's largest economy is heading for a slowdown.