Rupee rises 25 paise to close at 86.33 against U.S. dollar

Rupee strengthens against US dollar due to positive equities, but faces volatility amid global economic uncertainty.

The rupee appreciated 25 paise to close at 86.33 (provisional) against the U.S. dollar on Wednesday (January 22, 2025), supported by positive domestic equities and soft U.S. dollar index.

Forex traders said the rupee is likely to witness high volatility with a negative bias ahead of key events in the global and domestic economic landscape.

Moreover, the overall uncertainty about the global economy continued to weigh on both currencies and commodities, keeping investors on edge.

At the interbank foreign exchange, the rupee opened at 86.56 against the greenback. During the day, the local unit touched an intraday high of 86.30 and a low of 86.71.

It finally closed at 86.33 (provisional) against the U.S. dollar, up 25 paise from its previous close.

On Tuesday (January 21, 2025), the rupee fell 13 paise to 86.58 against the U.S. dollar.

"We expect the rupee to remain largely weak on underlying strength in the U.S. dollar and overall weakness in the domestic markets. Importer demand for dollars may also pressurise the rupee. However, any extended sell-off in crude oil may support the rupee at lower levels," Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan, said.