Rupee falls 25 paise to close at 86.56 against U.S. dollar

Rupee falls against U.S. dollar due to global risk sentiments, FII outflows, and tariff threats by President Trump.

The rupee depreciated 25 paise to close at 86.56 (provisional) against the U.S. dollar on Tuesday (January 28, 2025), as global risk sentiments were dampened amid tariff threats by the U.S. President Donald Trump.

Forex traders said the rupee continued to face pressure due to sustained foreign fund outflows and the strength of the American currency in the overseas market amid unabated dollar demand from oil importers and weak risk appetite.

At the interbank foreign exchange, the rupee opened on a weak note at 86.53, and during the day touched a high of 86.50 and a low of 86.57 against the American currency.

The local unit settled for the day at 86.56 (provisional), registering a fall of 25 paise over its previous close.

On Monday (January 27, 2025), the rupee depreciated 9 paise to close at 86.31 against the U.S. dollar.

“The Indian rupee declined as global risk sentiments were dampened amid tariff threats by Mr. Trump. This impacted the Chinese Yuan, which also led to strengthening of the U.S. dollar,” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

Mr. Choudhary further said a surge in U.S. treasury yields and FII outflows also pressurised the rupee. However, a decline in crude oil prices cushioned the downside.