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The rupee dipped 1 paisa to 85.87 against the U.S. dollar in early trade on Friday (January 10, 2025) due to a firm American currency and massive outflow of foreign capital.
Higher crude oil prices overseas also weighed on the Indian currency though it found some support tracking positive cues from domestic equity markets, forex traders said.
At the same time, they said, the dollar strengthened on increased demand amid the anticipation of restrictive trade measures by the new U.S. administration under President Donald Trump after January 20.
At the interbank foreign exchange, the rupee opened at 85.88 and moved up a tad to 85.87 against the greenback in initial deals, trading with a loss of 1 paisa from its previous close.
On Thursday, the rupee settled with a gain of 5 paise at 85.86 against the U.S. dollar, recovering from the steep decline of 17 paise in the preceding session.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.03% higher at 109.03. The 10-year U.S. bond yields also rose to 4.68%.
Brent crude, the global oil benchmark, climbed 0.31% to $77.16 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex was trading 253.40 points, or 0.33%, higher at 77,873.61 points, while the Nifty was up 62.60 points, or 0.27%, at 23,589.10 points.
Foreign institutional investors (FIIs) offloaded ₹7,170.87 crore in the capital markets on a net basis on Thursday, according to exchange data.
Published – January 10, 2025 11:09 am IST