Rupee Falls 20 Paise to 86.36 Against US Dollar in Early Trade

Mumbai, July 21, 2025 – The Indian rupee opened weaker on Monday, dropping 20 paise to 86.36 against the US dollar in early trade. The fall was attributed to the continued strength of the US dollar in global markets and a decline in domestic equity indices. The rupee has remained below the ₹86 barrier for two consecutive days, despite increased interest from FIIs (Foreign Institutional Investors) in the capital markets.

The trend is most likely to continue until there is clarity regarding the new tariff rules imposed by the US on Indian imports, which is expected on 01st August.

Rupee Opens Lower and Extends Losses

At the interbank foreign exchange market, the rupee opened at 86.27 and slipped further to a low of 86.36. This marks a 20-paise depreciation from its previous close of 86.16 on Friday, extending the rupee’s downward trend and breaching the critical 86.00 level.

Dollar Index and Crude Oil Movement

The US dollar remained strong globally, although the dollar index dipped slightly by 0.02% to 98.46. Brent crude futures, a global oil benchmark, rose 0.12% to USD 69.36 per barrel, offering minimal support to the rupee.

Domestic Equity Markets Under Pressure

Domestic equity markets opened in the red, adding pressure on the Indian currency. The BSE Sensex dropped 155.73 points or 0.19% to 81,602.00, while the NSE Nifty slipped 63.55 points or 0.25% to 24,904.85.

Foreign Institutional Investment Flows

Despite the rupee’s weakness, foreign institutional investors (FIIs) remained net buyers on Friday, with equity inflows totalling ₹374.74 crore, according to exchange data.

Outlook Ahead

Market participants remain cautious as they await developments in India-US trade negotiations. With the August 1 deadline for potential tariffs on Indian exports approaching, the outcome of these discussions may influence the rupee’s trajectory in the coming days.

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