Rupee Weakens 17 Paise to 85.97 Against US Dollar Amid FII Outflows and Stronger Greenback

Mumbai, July 14 – The Indian rupee opened the week on a weaker note, falling 17 paise to settle at 85.97 against the US dollar in early trade on Monday. The decline was attributed to a stronger dollar overseas, persistent foreign fund outflows, and ongoing uncertainty around US trade tariffs.

At the interbank foreign exchange, the domestic currency opened at 85.96 and slipped further to 85.97, compared to Friday’s close of 85.80.

Dollar Index and Crude Prices

The US dollar remained firm, with the dollar index rising 0.08% to 97.93, reflecting strength against a basket of six major currencies. Brent crude futures were marginally down by 0.19% at USD 70.02 per barrel, offering limited support to the rupee.

Equity Market Pressure and FII Outflows

Domestic equity markets mirrored the cautious sentiment. The BSE Sensex dropped 295.37 points to 82,205.10, while the NSE Nifty fell 71.4 points to 25,078.45 in early trade.

Foreign Institutional Investors (FIIs) continued their selling streak, offloading equities worth Rs 5,104.22 crore on Friday, as per exchange data.

Decline in Forex Reserves

Adding to the concerns, India’s foreign exchange reserves dipped by USD 3.049 billion to USD 699.736 billion for the week ended July 4, according to the Reserve Bank of India’s latest data.

With trade negotiations still ongoing and global market volatility persisting, analysts expect the rupee to remain within the 85.50-86.00 range for the day.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations