Rupee Depreciates by 15 Paise Against the Dollar To Close at Rs 86.07

Mumbai, July 17 – On Thursday, the Indian rupee depreciated by 15 paise to 86.07 per US dollar due to a stronger dollar index, outflows of foreign funds, and increasing volatility in global crude oil prices.

Forex traders said the rupee was also under pressure due to continuing selling pressure from domestic equity markets and uncertainty around the outcome of the ongoing India-US trade talks.

Key Drivers of Rupee Depreciation

The domestic currency came under pressure due to:

• A stronger US dollar, with the dollar index rising 0.25% to 98.63
• Selling pressure in domestic equities, with the Sensex dropping 375.24 points to 82,259.24 and the Nifty falling 100.60 points to 25,111.45
• Uncertainty over the outcome of ongoing India-US trade negotiations in Washington
• Foreign institutional investor (FII) outflows, with equities worth ₹1,858.15 crore sold on Wednesday

Trading Activity and Market Range

At the interbank foreign exchange market, the rupee opened at 85.93 and fluctuated between 85.80 and 86.09 before settling at 86.07 (provisional). This marked a further decline from Wednesday’s close of 85.92, when the currency had already weakened by 16 paise.

Global and Trade Developments

A four-day round of India-US bilateral trade talks, which began on Monday, is scheduled to conclude on Thursday. Market participants are closely watching the outcome of these negotiations. US President Donald Trump has indicated that the proposed deal could be similar to the trade pact finalised with Indonesia earlier this week.

Meanwhile, Brent crude, the global oil benchmark, edged down 0.06% to $68.48 per barrel in futures trading.

Outlook: The rupee’s movement remains sensitive to developments in global markets, crude oil prices, and trade outcomes, with near-term fluctuations expected to continue within a narrow range.

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