Rupee falls 16 paise to close at 86.87 against U.S. dollar

Rupee closes at 86.87 against the dollar, impacted by foreign fund outflows and U.S. dollar index recovery.

The rupee depreciated 16 paise to close at 86.87 (provisional) against the U.S. dollar on Monday (February 17, 2025), weighed down by significant foreign fund outflows and a recovery in the U.S. dollar index from intraday lows.

Forex traders said the Indian rupee is trading with a negative bias as foreign banks went on a dollar-buying spree and importers scrambled to secure dollars, as they feared further depreciation amid global uncertainty.

At the interbank foreign exchange, the rupee opened at 86.70 and touched the high of 86.68 against the greenback during intraday. It also touched the low of 86.88 before ending the session at 86.87 (provisional) against the dollar, logging a loss of 16 paise from its previous close.

On Friday (Feb. 14), the rupee extended its recovery and settled 21 paise higher at 86.71 against the U.S. dollar.

“Indian rupee declined today on a weak tone in the domestic markets and a recovery in the U.S. dollar index from intraday lows. However, weak tone in crude oil prices and a decline in U.S. treasury yields cushioned the downside,” said Anuj Choudhary – research analyst at Mirae Asset Sharekhan.

Traders may take cues from speeches by Federal Open Market Committee (FOMC) members.

“We expect the rupee to trade with negative bias amid weakness in the domestic equities and FII outflows. Overall strength in the U.S. dollar may also weigh on the rupee. However, any further decline in the U.S. treasury yields or any further intervention by the RBI may support the rupee at lower levels,” Mr. Choudhary added.