The Indian rupee strengthened for the fifth consecutive session as it closed 24 paise higher on Monday.
The domestic currency ended at 85.14 against the greenback in comparison to its previous close of 85.38 on Thursday, according to Bloomberg data. The rupee hovered near the psychological mark of 85, reaching an intraday high of 85.03.
The markets looked to the RBI for buying the dollar after exporters remained unhedged, according to Anil Bhansali, executive director at Finrex Treasury Advisors LLP. "A break of 85.00 will take it to 84.75 levels."
The broader market sentiment was influenced by several factors, including anxiety over tariffs and criticism of the US Federal Reserve chair by President Donald Trump, which led to a slump in the dollar and a rise in gold prices. Asian equities and US stock futures slid on Monday morning.
The markets were already on the edge due to rising geopolitical tensions as Russia and Ukraine violated the Easter Ceasefire, while in the Middle East, fighting continued, Bhansali said. "Trump's tariffs have roiled financial markets and triggered a violent sell-off in interest Treasuries and the dollar index, which has fallen to 98.59."
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