At the interbank foreign exchange, the domestic unit opened at 86.27 against the greenback. In initial trade, it witnessed a low of 86.36, registering a fall of 20 paise over its previous close.
On Friday (July 18), the rupee settled 4 paise lower at 86.16 against the US dollar.Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.02% to 98.46.
”As the dollar recovered, the Indian rupee has been showing downside syndromes and is expected to move between 85.90 to 86.40 with a downward bias for the rupee,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.Brent crude, the global oil benchmark, went up by 0.12% to ₹69.36 per barrel in futures trade.
Forex traders said all eyes are now on the outcome of India-US trade talks, especially as the August 1 deadline for potential tariffs on Indian exports draws near.
If the discussions fail or get delayed, Indian exporters could face fresh pressure — adding to the rupee’s challenges. However, if a deal is reached, it could offer a much-needed breather. Until then, the uncertainty is likely to keep market participants cautious, CR Forex Advisors MD – Amit Pabari said.
Pabari further added that for now, the trend continues to favour a weaker rupee. “The pair may find support around 85.70-85.80, but having crossed 86.00, the door is open for a possible move toward 86.50-86.80,” he added.
Meanwhile, in the domestic equity market, Sensex declined 155.73 points or 0.19% to 81,602.00, while Nifty fell 63.55 points or 0.25% to 24,904.85.
Foreign institutional investors (FIIs) purchased equities worth Rs 374.74 crore on a net basis on Friday (July 18), according to exchange data.
