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The rupee recorded a 12 money drop to settle at 86.52 (provisional) against the US dollar on Friday (July 25, 2025), monitoring negative domestic equity markets and increased global crude oil prices.
Forex traders stated that a strong American currency and outflow of foreign funds weighed on the local unit.
In the interbank Forex, the domestic unit opened at 86.59 and reached the lowest level of 86.63 against Greenback. The unit touched the 86.47 Intra-Day Shikhar before finishing the 86.52 (provisional) session, losing 12 money from its previous closing level.
On Thursday (July 24, 2025), the rupee witnessed some initial recovery, but ended the session, which was just 1 paise over 86.40 against the US dollar.
Mirae Asset Challekhan’s research analyst Anuj Chaudhary said that the rupee weakened due to the increase in crude oil prices and weakness in domestic markets, which also promoted the return of foreign institutional investors.
He said that the rupee is expected to trade with a slight negative bias between Thailand and Cambodia between the time limit of the August 1 trade deal and uncertainty before geopolitical stress.
Chaudhary said, “Traders can take indications from the US order data from the US.
Meanwhile, the dollar index, which detects the strength of greenback against a basket of six currencies, rose 0.33% to 97.44.
Analysts blamed recovery in dollar index for favorable employment data in the US
Global Oil Benchmark Brent crude, futures increased from 0.42% per barrel to 0.42%, as business agreements have supported upward movement in brent oil prices.
Forex traders said that uncertainty on the Indo-US trade deal has been an overhang for the foreign exchange market.
If the discussion fails or delays, Indian exporters may face new pressure – adding the challenges of the rupee.
However, if a deal takes place, it can offer a very important breath. Till then, uncertainty market participants are likely to be cautious.
Meanwhile, in the domestic equity market, Sensex crashed from 721.08 points or 0.88% to 81,463.09, while Nifty tank from 225.10 points or 0.90% to 24,837.
According to exchange data, foreign institutional investors (FII) on Thursday launched a price of 2,133.69 crores on a pure basis.
Published – July 25, 2025 04:21 pm IST
