Rupee falls 11 paise to close at 86.33 against U.S. dollar

Rupee closes at 86.33 against USD, influenced by strong dollar demand, muted equities, and upcoming Union Budget.

The rupee depreciated 11 paise to close at 86.33 (provisional) against the U.S. dollar on Monday (January 27, 2025), as strong dollar demand and a muted trend in domestic equities weighed on investors’ sentiments.

Forex traders said the Indian rupee gained on Friday (January 24, 2025) but opened on a lower note on Monday (January 27, 2025) as ‘Trump Tariffs’ uncertainty gained, while sustained foreign fund outflows dented investor sentiments further.

“Moreover, the upcoming Union Budget will play a crucial role in shaping market sentiment and the rupee’s trajectory, as expectations are high for favourable measures aimed at rekindling foreign investments,” traders said.

At the interbank foreign exchange, the rupee opened on a weak note at 86.35, and during the day touched a high of 86.33 and a low of 86.45 against the American currency.

The local unit settled for the day at 86.33 (provisional), registering a fall of 11 paise over its previous close.

On Friday (January 24, 2025), the rupee appreciated 22 paise to close at 86.22 against the U.S. dollar.

“We expect the rupee to trade with negative bias on positive U.S. dollar and weak tone in the domestic markets. Persistent FII outflows and importer demand for dollars may continue to pressurise the rupee.