Rupee makes strong comeback, biggest 6-year rally against dollar
New Delhi| After the withdrawal of foreign investors, the rupee has made a strong comeback, leaving behind the decline. In March, the Indian rupee saw its biggest monthly rise in the dollar in six years. During this period it closed at 85.50, up 2.17 per cent. Earlier in November, 2018, the rupee had increased by more than five percent. The Indian currency closed 24 paise higher on Friday.
According to the data, the rupee has fallen by more than two percent in the current financial year. On April 2, 2024, it was at 83.42 against the dollar. Foreign exchange traders said, foreign investors have returned to the capital market in March. This has seen a significant increase in the domestic currency. Foreign investors have invested more than Rs 32,000 crore in the last six consecutive trading sessions.
On Friday, the Indian currency opened at the level of 85.64 in the interbank foreign exchange market. It hit a high of 85.40 and a low of 85.70 during the day’s trading.
Withdrawals of just Rs 3,973 crore this month
Foreign institutional investors, who were selling heavily in the stock market till the first and second week of March, have now stopped withdrawals. Because of this, only Rs 3,973 crore has been withdrawn from the domestic market in this month. Earlier, Rs 78,027 crore had been withdrawn in January and Rs 34,574 crore in February. In this way, Rs 1.16 lakh crore has been withdrawn since January in the current calendar year.
Gold at new peak, 35% expensive in a year
Gold crossed 92,000 for the first time in the domestic market amid a rise in precious metals in foreign markets. Continuing its rise for the third consecutive trading session, gold on Friday became costlier by Rs 1,100 in the Delhi bullion market to a new peak of Rs 92,150 per 10 grams. Silver became costlier by Rs 1,300, approaching a record high of Rs 1,03,000 per kg. The price of silver had reached an all-time high of Rs 1,03,500 per kg on March 19, 2025.
Gold has become costlier by Rs 23,730 or 35 per cent in the current financial year 2024-25. On April 1, 2024, it had closed at Rs 68,420 per 10 grams. According to Kotak Securities, President Trump’s warnings about vehicle import tariffs and tariffs against the EU-Canada intensified demand for safe investment. Gold prices rose by nearly 8.2 percent this month due to global tensions and strong central bank purchases.
