"us-dollar"

Forex analysts noted that rising global tariff tensions kept driving foreign capital outflows, but the local currency gained support from a weaker U.S. dollar index and lower crude oil prices.

Forex analysts note that the local currency faced additional pressure from a strengthening U.S. dollar index and a rebound in crude oil prices, compounding the impact of selling in domestic equities and the ongoing outflow of foreign capital.

A lackluster domestic equity market and continuous foreign fund outflows exerted pressure on the local currency. However, easing crude oil prices provided some support, according to forex traders. At the interbank foreign exchange, the rupee opened weaker at 87.24 amid high volatility, hitting a low of 87.34 before stabilizing at 87.25 against the US dollar in early trade, marking a 30-paise decline from its previous close.

Forex traders noted that the local currency initially gained support following the US decision to postpone higher tariffs on Canada and Mexico. Additionally, the RBI's move to inject Rs 1.9 trillion liquidity into the banking system further strengthened the domestic unit. However, they added that volatile equity markets dampened sentiment, dragging the currency into negative territory.

The rupee is expected to trade in a range of 86.35-75 as the market gives opportunity for both exporters and importers to sell and buy their currencies: Anil Kumar Bhansali

Domestic benchmark indices too opened lower on Monday as US President Donald Trump threatened to start imposing new 25 per cent tariff on all steel and aluminium imports

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GTRI says depreciating domestic currency will increase India's gold import bill, especially as global gold prices have jumped 31.25 per cent, rising from USD 65,877 per kg in January 2024 to USD 86,464 per kg in January 2025

Record surge in crude oil prices, sustained outflow of foreign capital and negative trend in domestic equity markets keep Indian currency under pressure

The rupee dropped 5 paise to 85.69 against the US dollar in early trade, the first session of 2025

Forex traders say higher dollar demand as well as an upward momentum in crude oil prices due to volatile geopolitical situation pushed local unit further downward

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Forex traders noted that lower crude oil prices in the international market boosted the local currency's recovery. At the interbank forex market, the rupee opened at 84.42 and gained further to 84.38 against the US dollar, up by 8 paise from its previous close.

 Mumbai: The rupee rose 2 paise to 83.96 against the US dollar in early trade on Friday amid a weakening greenback. However, a rise in crude oil prices and constant FII outflows capped further gains in the domestic unit, according to forex traders. A weak start to the day in the domestic equity markets also […]

Forex experts noted that rising global oil prices and significant foreign fund outflows limited further recovery of the domestic currency. At the interbank foreign exchange, the rupee opened at 83.95, up by just 1 paisa against the US dollar, and remained mostly flat in early trading.

Most major central banks have shifted towards rate cuts, with the US Fed recently lowering rates by 50 basis points. Meanwhile, the RBI has kept its accommodative stance. The focus now turns to whether the central bank will transition from this accommodative position to a more neutral approach.

The rise in the country's foreign exchange reserves to a record high of USD 704.88 billion on Friday has further strengthened the domestic currency, according to forex traders.

Forex traders noted that subdued sentiment in the domestic equity markets, along with significant foreign fund outflows over the past three days, hindered any recovery in the rupee. In the interbank foreign exchange market, the local currency opened at 83.96 against the US dollar but was unable to recover from the sharp decline experienced in the previous session.

The continued outflow of foreign funds from capital markets and a stronger U.S. dollar put pressure on the Indian currency, according to forex traders. At the interbank exchange, the rupee opened at 83.91 and slipped further to 83.93 against the dollar, trading 11 paise lower than the previous session's close.

Forex traders noted that rising crude oil prices and a strong U.S. dollar against major global currencies, driven by increased demand from importers at the month's end, exerted pressure on the local currency. Additionally, they mentioned that investor participation was subdued as they awaited cues from the upcoming domestic manufacturing PMI (Purchasing Managers' Index) figures to be released this week.