RUPEE FALLS 7 PAISE TO CLOSE AT 85.77 AGAINST U.S. DOLLAR
The Indian rupee depreciated by 7 paise to settle at ₹85.77 against the U.S. dollar on Thursday, pressured by a strong greenback, rising crude prices, and persistent foreign capital outflows. The session witnessed muted domestic cues and cautious investor sentiment ahead of key global inflation data.
KEY REASONS FOR RUPEE DEPRECIATION
1. Strength of the U.S. Dollar
The U.S. dollar index remained strong, supported by hawkish signals from the U.S. Federal Reserve and better-than-expected economic indicators.
2. FII Outflows
Foreign institutional investors continued to pull funds out of Indian equities, putting pressure on the rupee.
3. Crude Oil Price Impact
Rising global crude prices increase India’s import bill, adding further stress on the domestic currency.
4. Weak Risk Sentiment
Geopolitical tensions and global inflation worries kept risk sentiment low, prompting demand for safer assets like the U.S. dollar.
RUPEE MOVEMENT SNAPSHOT
Opening Level: ₹85.69
Intraday High: ₹85.64
Intraday Low: ₹85.81
Closing Rate: ₹85.77 (Down 7 paise from previous close of ₹85.70)
Forex traders noted that the rupee remained in a narrow range through most of the day but settled lower due to late-session dollar demand from oil importers.
FREQUENTLY ASKED QUESTIONS (FAQ)
Q1: Why did the rupee fall today?
The fall was mainly due to a stronger U.S. dollar, ongoing FII outflows, and higher crude oil prices.
Q2: Is this fall part of a larger trend?
Yes, the rupee has been under moderate depreciation pressure over the last few weeks amid global risk-off sentiment and strengthening U.S. economic data.
Q3: What is the expected USD/INR range in coming days?
Analysts expect the rupee to trade between ₹85.60 and ₹86.00 in the short term, depending on global cues and domestic macro data.
Q4: How does a weaker rupee affect the Indian economy?
It increases import costs (especially for oil and electronics), raises inflation risks, and can strain trade balances — but it may support exports.
Q5: Can RBI intervene to stabilize the rupee?
Yes, the Reserve Bank of India frequently intervenes in the forex market to curb volatility, although it avoids targeting specific levels.
Published on: July 11, 2025
Published by: PAVAN
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