Rupee falls 9 paise to close at 86.64 against U.S. dollar

Rupee closes at 86.64 against dollar, facing pressure from strong U.S. dollar and foreign fund outflows.

The rupee depreciated 9 paise to close at 86.64 (provisional) against the U.S. dollar on Thursday (January 30, 2025), weighed down by a strong U.S. dollar amid a hawkish tone of the U.S. Federal Reserve.

Forex traders said the rupee continued to face pressure due to sustained foreign fund outflows and the broad strength of the American currency in the overseas markets.

At the interbank foreign exchange, the rupee opened on a weak note at 86.58 and touched a high of 86.56 and a low of 86.65 against the American currency during the session.

The local unit settled at 86.64 (provisional), registering a fall of 9 paise over its previous close.

On Wednesday (Jan. 29), the rupee pared its initial losses to settle on a positive note, higher by 2 paise to close at 86.55 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.02% lower at 107.98.

“U.S. Dollar gained on the hawkish tone of the U.S. Federal Reserve. Fed kept interest rates unchanged at 4.25-4.5% at its Federal Open Market Committee [FOMC] meeting on Wednesday [Jan. 29],” said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.