Rupee rises 22 paise to close at 86.22 against U.S. dollar

The rupee appreciated 22 paise to close at 86.22 (provisional) against the U.S. dollar on Friday (January 24, 2025), as a decline in the U.S. dollar index supported investor sentiments.

Forex traders said weak crude oil prices also supported the local unit, while sustained foreign fund outflows weighed on the local unit.

Traders further noted that the upcoming Union Budget will play a crucial role in shaping market sentiment and the rupee’s trajectory.

At the interbank foreign exchange, the rupee opened on a strong note at 86.31 against the greenback. During the day, the local unit touched an intraday high of 86.16 and a low of 86.36.

It finally closed at 86.22 (provisional), rising 22 paise against the U.S. dollar from previous close.

On Thursday (January 23, 2025), the rupee declined 9 paise to settle at 86.44 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading down 0.56% to 107.44.

“The Dollar Index has recently surged, reaching a high of 110, fuelled by escalating uncertainty surrounding the ‘Trump factor’. However, this rally in the Dollar Index is unlikely to be sustained as global uncertainties subside and Trump-related risks diminish,” CR Forex Advisors - MD Amit Pabari said.

“Moreover, at the World Economic Forum in Davos, Switzerland, U.S. President Donald Trump called for an immediate interest rate cut by the Federal Reserve, a move that will generate a negative sentiment for the DXY,” Pabari added.

Meanwhile, Brent crude, the global oil benchmark, rose 0.47% to $78.66 per barrel in futures trade.

“Brent oil was trading at $78.03 per barrel as Mr. Trump asked Saudi to lower prices so that he could make Russia stop the war. He has also threatened sanctions against Russia if they do not get out of the war,” Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, said.

In the domestic equity market, the 30-share BSE Sensex fell 329.92 points, or 0.43%, to settle at 76,190.46 points, while the Nifty declined 113.15 points, or 0.49%, to 23,092.20 points.

Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Thursday (January 23, 2025), as they offloaded shares worth ₹5,462.52 crore, according to exchange data.