The currency halted a five-quarter long losing run with
gains of 0.67%, while for the overall financial year it declined
7.8%, its biggest loss since 2020.
Indian equities rallied 1.6% on the last day of the
fiscal year, as most Asian shares rose and European stocks
opened higher after fears over a wider banking crisis seemed to
abate. Markets now shift their focus back to inflation and the
outlook for interest rate hikes.
The dollar index rebounded later in the day as money
markets showed the probability of a 25 basis point hike at the
Federal Reserve's May meeting rose to 60% from hovering between
40%-50% for most of the week. Asian currencies reversed earlier gains, but the rupee may
have been supported due to corporates selling dollars ahead of
the fiscal year-end, said a state-run bank trader.
Investors turned positive on the overall outlook for the
currency as well as dollar-rupee premiums as markets priced-in
rate cuts from the Fed June onwards.
"The rupee will likely trade with a positive bias in the
near-term, in the range of 81.80-82.40, supported by dollar
weakness and an improvement in risk appetite," HDFC Bank
economists wrote in a note.
Market participants now await U.S. February data on the
personal consumption expenditures (PCE) price index, which is
the Fed's preferred measure of inflation.
The report is expected to show consumer spending likely rose
0.3% in February, after jumping 1.8% in January.
(Reporting by Anushka Trivedi; Editing by Sonia Cheema)
By Anushka Trivedi
MUMBAI, March 31 (Reuters) - The Indian rupee firmed
against the dollar on Friday on likely fiscal year-end related
inflows and strength in local equity markets.
The rupee finished at 82.1650 per dollar, compared
to its previous close of 82.3375.
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