Mumbai, Feb 21 (PTI) The rupee pared initial gains and settled 7 paise lower at 86.71 (provisional) against the U.S. dollar on Friday (February 21, 2025), weighed down by sustained foreign fund outflows and a recovery in the American currency index.
Forex traders said the Indian rupee declined on Friday (February 21, 2025) on weak domestic markets and a recovery in the U.S. dollar index. However, weak crude oil prices cushioned the downside.
At the interbank foreign exchange, the rupee opened on a positive note at 86.50 against the greenback. During the session it pared the gains and fell to an intra-day low of 86.77 before ending the session at 86.71 (provisional) against the dollar, logging a loss of 7 paise from its previous close.
On Thursday (February 20, 2025), the rupee appreciated 34 paise to close at 86.64 against the U.S. dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.22% higher at 106.61.
Brent crude, the global oil benchmark, fell 0.42% to $76.16 per barrel in futures trade.
“We expect the rupee to trade with negative bias on the back of weak domestic markets and selling pressure by FIIs. A bounce back in the U.S. dollar pressurised the rupee further. However, any fresh intervention by the RBI and weak tone in crude oil prices may support the rupee at lower levels,” said Anuj Choudhary — Research Analyst at Mirae Asset Sharekhan.
Mr. Choudhary further noted that the USD-INR spot price is expected to trade in a range of 86.50 to 87.
In the domestic equity market, the 30-share BSE Sensex declined 424.90 points, or 0.56%, to settle at 75,311.06, while the Nifty fell 117.25 points, or 0.51%, to 22,795.90 points.
Foreign institutional investors (FIIs) offloaded equities worth ₹3,311.55 crore on net basis on Thursday (February 20, 2025), according to exchange data.
Meanwhile, Moody’s Analytics on Thursday (February 20, 2025) said India’s growth will slow to 6.4% in 2025, from 6.6% in 2024, as new U.S. tariffs and softening global demand weigh on exports.
In its report titled ‘Asia-Pacific Outlook: Chaos Ahead’, Moody’s Analytics said growth across the Asia-Pacific economy will slow in 2025 as trade tensions, policy shifts, and uneven recoveries knock the region’s fortunes.
