India rupee opens at 91.65 against dollar vs 91.60 previous close

India rupee opens at 91.65 against dollar vs 91.60 previous close

The Indian rupee opened at 91.65 against the U.S. dollar on March 5, 2026, marking a 0.05% increase from its previous close of 91.60. This follows a volatile trading session on March 4, during which the rupee hit an intraday low of 92.00 before settling at 91.88 (provisional) amid persistent foreign fund outflows and risk-off sentiment in global markets. The currency's movement reflects ongoing pressures from foreign institutional investor (FII) selling, rising U.S. Treasury yields, and elevated crude oil prices, which collectively weigh on the domestic unit.

Historically, the rupee has experienced significant fluctuations in recent months. The highest exchange rate over the past six months was recorded on January 29, 2026, at 92.0430, while the lowest was 87.0180 on August 21, 2025. According to historical data, the average rate for the same period stood at 89.0391. Analysts attribute the rupee's recent weakness to sustained dollar demand from importers and hedgers, coupled with geopolitical uncertainties and a lack of progress in U.S.-India trade negotiations.

Market participants anticipate continued volatility, with the USD-INR pair expected to trade within a range of 91.60 to 92.30. A potential intervention by the Reserve Bank of India (RBI) or a weaker U.S. dollar could provide temporary relief, but external pressures remain a key concern for near-term stability. Investors are advised to monitor global risk sentiment and domestic equity market performance, which have historically influenced the rupee's trajectory.