Foreign institutional investors purchased equities worth ₹374.74 crore on a net basis on July 18, 2025, according to exchange data. File
| Photo Credit: Reuters
The rupee depreciated 14 paise to close at 86.30 (provisional) against the U.S. dollar on Monday (July 21, 2025) due to consistent dollar demand from oil importers.
Forex traders said after breaching the crucial 86 level, the rupee continued its decline, which intensified the downward trend, tracking a strengthening dollar index.
At the interbank foreign exchange, the domestic unit opened at 86.27 against the greenback and touched an intra-day high of 86.19 and a low of 86.36 against the greenback.
At the end of Monday’s (July 21, 2025) trading session, the local unit settled at 86.30, down 14 paise over its previous closing price.
On Friday (July 18, 2025), the rupee settled 4 paise lower at 86.16 against the U.S. dollar.
Forex traders said all eyes are now on the outcome of India-U.S. trade talks, especially as the August 1 deadline for potential tariffs on Indian exports draws closer. If the discussions fail or get delayed, it will add to the rupee’s challenges, and if a deal is reached, it could offer a much-needed breather.
The uncertainty around the India-U.S. trade deal is likely to keep market participants cautious, they added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.22% to 98.26.
Brent crude, the global oil benchmark, fell 0.48% to $68.95 per barrel in futures trade.
“The Indian rupee has experienced considerable weakness in recent days and remains the weakest among Asian currencies,” the traders said.
“The primary catalysts for this decline are consistent dollar demand from the importers and a continued exodus of foreign capital. On the technical front, the spot USD/INR has immediate resistance at 86.65 and a significant support at 85.80,” said Dilip Parmar, Research Analyst, HDFC Securities.
In the domestic equity market, the 30-share BSE Sensex advanced 442.61 points, or 0.54%, to 82,200.34, while the Nifty rose 122.30 points, or 0.49%, to 25,090.70.
Foreign institutional investors (FIIs) purchased equities worth ₹374.74 crore on a net basis on Friday (July 18, 2025), according to exchange data.
Published – July 21, 2025 05:11 pm IST
