Foreign Institutional Investors bought equities worth ₹550.85 crore on August 18, 2025, according to exchange data. File
| Photo Credit: Reuters

According to exchange data, FIIs offloaded equities worth ₹3,958.37 crore in the capital markets on a net basis on Monday, February 3, 2025. Photo: V.V.Krishnan

The rupee recovered 3 paise from its all-time low level to close at 87.08 (provisional) against U.S. dollar on Tuesday (February 4, 2025), as the American currency index retreated from its elevated level after President Donald Trump agreed to pause tariffs on Mexico and Canada.

Forex traders said the U.S. dollar index, which had surged past the 109.88 level, retreated to the 108 level after Trump announced the temporary pause on tariffs for 30 days.

At the interbank foreign exchange, the rupee opened at 86.98 and touched an intraday low of 87.13 against the American currency during the session.

The local unit finally settled at 87.08 (provisional), higher by 3 paise over its previous close.

On Monday (February 3, 2025), the rupee plunged 49 paise to close at an all-time low of 87.11 against the U.S. dollar.

“We expect the rupee to trade with negative bias over uncertainty over U.S. trade tariffs. Escalation of the tariff war by China may dent global risk sentiments wherein the U.S. dollar may strengthen, and investors would look out for safe haven. However, any central bank intervention may support the rupee,” Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, said.

“Investors may remain cautious ahead of the Reserve Bank of India’s monetary policy meeting this week,” Mr. Choudhary added.

The monetary policy committee (MPC) of the Reserve Bank of India (RBI) will begin its three-day meeting on February 5. The MPC will announce its policy decisions on February 7.

Mr. Trump on Monday (February 3, 2025) held off on his tariff threats against Mexico and Canada for 30 days after they pledged to boost border enforcement.

Meanwhile, Finance Minister Nirmala Sitharaman on Monday (February 3, 2025) said the value of the Indian rupee is market-determined, and there has been no devaluation, which is a feature of a fixed exchange rate regime.

The rupee has been falling in recent weeks, and on Monday (February 3, 2025) touched an all-time intraday low of 87.29 against the American currency.

Finance Secretary Tuhin Kanta Pandey on Monday (February 3, 2025) said there is no concern over the rupee value and the Reserve Bank of India is managing the volatility of the local currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.48% lower at 108.47.

Brent crude, the global oil benchmark, fell 1.18% to $75.06 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex closed 1,397.07 points, or 1.81%, higher at 78,583.81 points, while the Nifty settled up 378.20 points, or 1.62%, at 23,739.25 points.

Foreign institutional investors (FIIs) offloaded equities worth ₹3,958.37 crore in the capital markets on a net basis on Monday (February 3, 2025), according to exchange data.

On the domestic macroeconomic front, India’s manufacturing sector growth started the year 2025 on a strong footing and touched a six-month high in January, fuelled by the steepest upturn in exports in nearly 14 years, a monthly survey said on Monday, February 3, 2025.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose from December’s one-year low of 56.4 to 57.7 in January supported by the fastest upturn in new export orders since February 2011.

Image used for representational purposes. File
| Photo Credit: RAGHUNATHAN SR

The rupee declined sharply by 15 paise to close at 84.44 (provisional) against the U.S. dollar on Wednesday (November 27, 2024) amid uncertainties surrounding U.S. President-elect Donald Trump’s trade policies and an increase in crude oil prices.

However, a strong show at the domestic equity markets, FII inflows along with a weakening dollar against major currencies supported the local unit at lower level, according to forex traders.

At the interbank currency exchange, the rupee opened at 84.38, lower by 9 paise from its previous close, but declined to an intra-day low of 84.48 during the session. It settled at 84.44 (provisional), 15 paise lower than Tuesday’s (November 26, 2024) close of 84.29.

According to analysts, U.S. President-elect Donald Trump’s indication of adopting aggressive trade policies added to the volatility in the currency.

“Rupee lost all its sheen it had gained on Wednesday (November 27, 2024) and fell to 84.48 before recovering as RBI sold dollars… but dollars were bought again on account of month-end demand and it (rupee) closed lower,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“It is expected to be in the range of 84.30 to 84.55 on Thursday (November 28, 2024),” he added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.46% at 106.51.

Brent crude, the global oil benchmark, rose 0.55% to $73.21 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex climbed 230.02 points to settle at 80,234.08, while Nifty also rose 80.40 points to end the day at 24,274.90.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Tuesday (November 26, 2024), purchasing shares worth ₹1,157.70 crore, according to exchange data.