Rupee falls 8 paise to 85.70 against U.S. dollar in early trade

On Thursday (July 3, 2025), the rupee made 8.70 to 85.70 against the US dollar in the initial trade, which was renewed by the headwind renewed by the global risk spirit and the outflow of foreign funds.

Forex traders said that the rupee was trading in a narrow range on a large scale due to the RBI’s vigilant strategy as any dip in the USD-INR is likely to be completed with the purchase of dollars by the RBI, not only to manage maturity but also to recreate its intervention cushion.

This continuous demand of the dollar by the central bank is limiting the profit for the rupee, he said.

In interbank foreign currency, the domestic unit opened against Greenback at 85.69. In the initial trade, it looked at the bottom of 85.70, which records a decline of 8 money in its previous bandh.

On Wednesday (July 2, 2025), the rupee closed 3 money at 85.62 against the US dollar.

Traders are waiting for the US trade deal and NFPR data, which are meant to gauge the direction of the markets, which looks less towards 85, the Treasury’s leading and executive director Finerex Finerex Treasury Advisors LLP Anil Kumar Bhansali said.

Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, increased 0.07% to 96.84.

Global Oil Benchmark Brent crude fell 0.72% to $ 68.61 per barrel in futures trade.

“Brent crude prices are back – Mandrana near $ 68.5 per barrel. For pure oil importer like India, it is a short -term threat to business balance because growing crude usually means high import bill and a heavy current account, putting extra pressure on the rupee,” CR Forex Advisors MD – said Amit Pabri.

Meanwhile, in the domestic equity market, Sensex advanced from 168.93 points or 0.20% to 83,578.62, while the Nifty rose 52.75 points or 0.21% to 25,506.00.

According to exchange data, foreign institutional investors (FII) on Wednesday launched the price of 1,561.62 crore on a pure basis.

“FIIs remain pure vendors in Indian markets, pulling out more than $ 6 billion from year to year. This ongoing outflow has worked as an important drag on the strength of the rupee, offset the weakness of the assistant global dollar,” said Mr. Pabri.