Rupee trades in narrow range against U.S. dollar in early trade

Rupee depreciates against dollar due to foreign fund outflows, domestic equities, and RBI intervention, amid global uncertainty.

The rupee witnessed a range-bound trade and depreciated 5 paise to 86.76 against the U.S. dollar in initial deals on Monday (February 17, 2025), weighed down by significant foreign fund outflows and a negative trend in domestic equities.

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 moved in a narrow range. It opened at 86.70, then touched a high of 86.68 and a low of 86.76 in initial deals amid high volatility.

On Friday (February 14, 2025), the rupee extended its recovery and settled 21 paise higher at 86.71 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 106.68.

“Despite the sharp fall in the dollar index, the Indian rupee remained relatively range-bound between 86.60 and 86.90. This resilience is likely due to the Reserve Bank of India’s (RBI) intervention on both sides — accumulating reserves at lower levels and selling forwards at higher levels to stabilize excessive rupee depreciation,” CR Forex Advisors MD Amit Pabari said.

Brent crude, the global oil benchmark, rose 0.12% to $74.83 per barrel in futures trade.