According to forex traders, renewed foreign capital inflows and sliding global crude prices supported the domestic unit. Representational file image.
| Photo Credit: Reuters
The rupee declined 18 paise against the U.S. dollar to close at 85.94 (provisional) on Wednesday (July 16, 2025), tracking a strengthening American currency against major crosses overseas amid uncertainties over the India-U.S. trade pact.
However, renewed foreign capital inflows and sliding global crude prices supported the domestic unit, according to forex traders.
At the interbank foreign exchange, the rupee opened weak at 86.02 against the dollar. It traded in the range of 85.74-86.05 during the day before closing at 85.94 (provisional), down 18 paise from its previous close.
In the previous session, the rupee appreciated 16 paise to close at 85.76 against the U.S. dollar.
“The Indian Rupee experienced notable volatility today, initially weakening against a robust U.S. Dollar before recovering mid-session due to dollar supply, only to conclude with net losses.
“This movement follows a three-day consolidation phase for the USD-INR pair, ranging from 85.70 to 86.05. The sentiment remains acutely favourable for the dollar, driven by expectations of a hawkish Federal Reserve post-U.S. inflation data and persistent uncertainties regarding India-U.S. trade agreements,” said Dilip Parmar, Research Analyst, HDFC Securities.
An Indian commerce ministry team is in Washington for another round of talks on the proposed bilateral trade agreement. The four-day talks, which started on Monday (July 14, 2025), will conclude on Thursday (July 17, 2025).
“We continue to await the outcome of the trade deal as inflows and outflows keep the rupee well entrenched in a range of 85.70 to 86.10. We expect a similar range for the rupee tomorrow (Thursday) as well,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
Brent crude, the global oil benchmark, was down 0.26% to $68.53 per barrel in futures trade. The dollar index, which gauges the greenback’s strength against a basket of six currencies, dipped 0.07% to 98.54.
On the domestic equity market front, the Sensex rose 63.57 points to settle at 82,634.48, while the Nifty inched up 16.25 points to 25,212.05.
Foreign institutional investors (FIIs) bought equities worth â‚ą120.47 crore on a net basis on Tuesday (July 15, 2025), according to exchange data.
Published – July 16, 2025 04:50 pm IST
