New Delhi: The dollar which was strutting with a jump of 23 paise against the rupee in the morning session, the same dollar was seen bleating till the market closed in the evening. It was expected that the rupee would close with a big fall against the dollar before Trump’s tariff announcement. The fall of 23 paise in the morning was also indicating this. But the rise in the stock market and the price of crude oil supported the falling rupee and it strengthened itself and closed at 85.52. Let us tell you how the rupee showed its strength to the world and at what level it reached.

Tremendous recovery in Rupee

On Wednesday, the Rupee made a strong comeback against the Dollar in the second half and after making a tremendous recovery, closed at 85.52 (provisional) with a decline of only 2 paise against the US Dollar. The surge in the domestic stock market completely negated the uncertainty over tariffs.

According to foreign currency traders, the Indian rupee appeared under pressure in the morning in the first trading session of the financial year 2025-26 due to Trump’s reciprocal tariff and FII selling. But due to the rise in the stock market and the fall in crude oil prices, the rupee not only bounced back but also came close to the same level where it was on Friday. The rupee opened at 85.65 in the interbank foreign currency exchange market and then touched an intra-day high of 85.50 and a low of 85.73 against the dollar. By the time the market closed, the rupee declined by two paise and closed at 85.52.

How much did the rise come in March

On Friday, the rupee rose 24 paise to close at 85.50 against the US dollar. This is the first trading session of the financial year 2025-26. The currency and bond markets were closed on Tuesday due to the annual account closure of banks on April 1. Stock, currency, commodity and derivative markets were closed on March 31 due to Eid-ul-Fitr. The rupee weakened by more than 2 percent in the financial year 2024-25. It stood at 83.42 against the US dollar on April 2, 2024. The local currency gained 2.17 per cent in March this year, the maximum since November 2018, when the local unit had gained over 5 per cent.

Stock market rises

The dollar index fell 0.12 percent to trade at 104.13. Brent crude oil fell 0.12 percent to US $ 74.40 per barrel. In the domestic stock market, the 30-share BSE Sensex closed at 76,617.44 points, up 592.93 points or 0.78 percent, while the Nifty closed at 23,332.35 points, up 166.65 points or 0.72 percent. According to exchange data, foreign institutional investors (FIIs) turned sellers on Tuesday and sold shares worth Rs 5,901.63 crore on a net basis.

Manufacturing sector booming

Meanwhile, a monthly survey on Wednesday said India’s manufacturing sector grew rapidly in March to an eight-month high, driven by a sharp rise in factory orders and production amid improving demand conditions. The seasonally adjusted HSBC India manufacturing purchasing managers’ index (PMI) stood at 58.1 in March, up from 56.3 in February. On Friday, the Reserve Bank of India said the country’s foreign exchange reserves rose by USD 4.529 billion to USD 658.8 billion during the week ended March 21. In the previous reporting week, the overall reserves had risen by USD 305 million to USD 654.271 billion.