Traders may take cues from speeches by Federal Open Market Committee (FOMC) members. file
| Photo Credit: Reuters

The rupee depreciated 16 paise to close at 86.87 (provisional) against the U.S. dollar on Monday (February 17, 2025), weighed down by significant foreign fund outflows and a recovery in the U.S. dollar index from intraday lows.

Forex traders said the Indian rupee is trading with a negative bias as foreign banks went on a dollar-buying spree and importers scrambled to secure dollars, as they feared further depreciation amid global uncertainty.

At the interbank foreign exchange, the rupee opened at 86.70 and touched the high of 86.68 against the greenback during intraday. It also touched the low of 86.88 before ending the session at 86.87 (provisional) against the dollar, logging a loss of 16 paise from its previous close.

On Friday (Feb. 14), the rupee extended its recovery and settled 21 paise higher at 86.71 against the U.S. dollar.

“Indian rupee declined today on a weak tone in the domestic markets and a recovery in the U.S. dollar index from intraday lows. However, weak tone in crude oil prices and a decline in U.S. treasury yields cushioned the downside,” said Anuj Choudhary – research analyst at Mirae Asset Sharekhan.

Traders may take cues from speeches by Federal Open Market Committee (FOMC) members.

“We expect the rupee to trade with negative bias amid weakness in the domestic equities and FII outflows. Overall strength in the U.S. dollar may also weigh on the rupee. However, any further decline in the U.S. treasury yields or any further intervention by the RBI may support the rupee at lower levels,” Mr. Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.14% higher at 106.85.

Brent crude, the global oil benchmark, rose 0.12% to $74.83 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex advanced 57.65 points, or 0.08%, to settle at 75,996.86, while the Nifty rose 30.25 points, or 0.13%, to 22,959.50 points.

Foreign institutional investors (FIIs) offloaded equities worth ₹4,294.69 crore in the capital markets on a net basis on Friday (Feb. 14), according to exchange data.

Meanwhile, India’s forex reserves jumped by $7.654 billion to $638.261 billion in the week ended February 7, the RBI said on Friday (Feb. 14).

This is the third consecutive week of a jump in the kitty, which had increased by $1.05 billion to $630.607 billion for the week ended January 31.

At the interbank foreign exchange market, the local unit opened at 83.56 and gained further ground to trade at 83.49 against the greenback in initial deals, registering an increase of 8 paise from its previous closing level. File
| Photo Credit: V.V. Krishnan

The rupee appreciated 8 paise to 83.49 against the U.S. dollar in early trade on June 27, as crude oil prices retreated from their elevated levels.

Forex traders said the strength of the American currency in the overseas market and foreign fund outflows weighed on the local unit and restricted the upmove.

At the interbank foreign exchange market, the local unit opened at 83.56 and gained further ground to trade at 83.49 against the greenback in initial deals, registering an increase of 8 paise from its previous closing level.

On June 26, the rupee depreciated 14 paise against the U.S. dollar and settled at 83.57.

“Stronger fundamentals such as stable inflation, accelerated economic growth, higher business activity, and a controlled Current Account Deficit offer a counterbalance supporting the rupee. Additionally, continuous RBI intervention has also helped prevent significant rupee depreciation,” CR Forex Advisors MD Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.10% at 105.94.

Brent crude futures, the global oil benchmark, were trading 0.20% lower at $85.08 per barrel.

Brent oil prices slid after U.S. inventory build-up fuelled fears about a slow demand from the U.S. Worries about a potential expansion of Gaza Hostilities disrupting Middle East supplies capped the decline, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

In the domestic equity market, the 30-share BSE Sensex declined 38.81 points, or 0.05%, to 78,635.44 points. The broader NSE Nifty fell 15.20 points, or 0.06%, to 23,853.60 points.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on June 26, as they offloaded shares worth ₹3,535.43 crore, according to exchange data.

The rupee strengthened by 6 paise to 83.26 against the U.S. dollar in early trade on September 20 on easing global crude oil prices and rising appetite for riskier assets.

However, a sell-off in the domestic equity markets and a strong American currency against major rivals overseas restricted the rupee’s rise, traders said.

At the interbank foreign exchange, the domestic unit opened at 83.22 against the dollar and then slipped to 83.26, registering a gain of 6 paise over its previous close.

In the initial trade, the domestic unit was moving in a tight range of 83.27-83.22 against the American currency.

In the previous session on September 18, the rupee had settled at an all-time low of 83.32 against the dollar.

Currency markets were closed on September 19 on account of Ganesh Chaturthi.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was almost unchanged at 104.83.

Brent crude futures, the global oil benchmark, fell 1% to $93.40 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading 307.27 points or 0.45% lower at 67,289.57. The broader NSE Nifty declined 100.75 points or 0.5% to 20,032.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on September 18 as they sold shares worth ₹1,236.51 crore, according to exchange data.