Rupee Appreciated by 10 Paise Against the Dollar To Close at Rs 85.82 Today

Mumbai, July 15 – The Indian rupee appreciated by 10 paise to settle at 85.82 against the US dollar on Tuesday. This, amid a softer greenback in global markets and declining crude oil prices. However, gains were partially limited by foreign fund outflows and uncertainties surrounding the ongoing India-US trade negotiations.

Rupee Opens Stronger, Ends Higher

At the interbank foreign exchange market, the rupee opened at 85.97, traded within a range of 85.75 and 85.97 on Tuesday, and settled at 85.82, gradually recovering from Monday’s closing rate of 85.92.

Market participants cited that the Reserve Bank of India intervened near the 86.00 level, which contributed to a nominal strengthening in the rupee.

Key Drivers Behind the Rupee’s Movement

• Weak Dollar Globally: The dollar index eased 0.11% to 97.97, which aided emerging market currencies, such as the rupee.
• Crude Oil Decline: Brent crude futures dropped 0.43% to $68.91 per barrel, easing import-related pressures on the Indian currency.
• FII Outflows: Despite the gains, the rupee remained under some pressure from continued foreign institutional investor (FII) selling. FIIs pulled out Rs 1,614.32 crore from Indian equities on Monday.

India-US Trade Talks in Focus

A delegation from India’s commerce ministry is currently in Washington for a four-day round of discussions aimed at finalising a Bilateral Trade Agreement (BTA). The outcome of these talks, which conclude Thursday, is being closely watched by currency markets.

Equity Markets Boost Sentiment

Domestic equity benchmarks ended on a strong note:

• BSE Sensex rose by 317.45 points to 82,570.91
• NSE Nifty added 113.50 points to 25,195.80

The strength in equities provided additional support to the rupee.

External Trade Update

According to fresh government data, India’s exports remained flat at USD 35.14 billion in June, while the trade deficit stood at USD 18.78 billion, reflecting a stable external sector performance for the month.

Outlook

With the RBI closely monitoring and the potential for additional inflows at the forefront, forex traders predict the rupee to trade in the 85.50–86.10 range over the next few sessions. The market’s focus remains on the India-US trade talks along with global macroeconomic cues.

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