The rupee closed 0.3% higher at 86.9550 against the dollar, its best single-day gain since February 11.
Traders pointed to dollar sales from foreign and state-run banks during the session, which helped lift the rupee, alongside a markedly softer dollar. The dollar index fell nearly 0.6% to 104.9, its weakest level since November 2024, pressured by a sharp rise in the euro which was hovering at a near four-month peak against the greenback. Asian currencies were up between 0.1% to 0.8%.
Concerns about the US growth outlook alongside uncertainty about the growth-inflation impact of trade tariffs have weighed on the dollar and US bond yields over recent sessions.
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