Moreover, the support from developing trade agreements was negated by the sustained foreign fund outflows, they said.
At the interbank foreign exchange, the domestic unit opened on a positive note and touched 86.43 against the greenback in initial deals, higher by 9 paise from its previous closing level.On Friday (July 25), the rupee declined 12 paise to settle at 86.52 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03% to 97.61.
Brent crude, the global oil benchmark, went up by 0.48% to $68.77 per barrel in futures trade, supported by developing trade agreements.Brent oil prices edged up from three week lows in Asian trading to $68 per barrel after EU and US reached a trade agreement that eased tariff concerns and boosted future energy demands, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
The investors are now watching developments from FED which begins its two-day policy meeting from Tuesday, Bhansali said.
”The Indian rupee is expected to be steady near 86.47 after the European deal was done but India is still away from a conclusive deal,” Bhansali said, adding that the month-end demand may keep the rupee stable.
Meanwhile, in the domestic equity market, Sensex declined 67.43 points or 0.08% to 81,395.66, while Nifty fell 14.25 points or 0.06% to 24,851.25.
Foreign institutional investors (FIIs) offloaded equities worth $1,979.96 crore on a net basis on Friday (July 25), according to exchange data.
Meanwhile, India’s forex kitty declined by $1.183 billion to $695.489 billion during the week ended July 18, the RBI said on Friday (July 25).
In the previous week, the overall kitty had dropped by $3.064 billion to $696.672 billion. The reserves had touched an all-time high of $704.885 billion at end-September 2024.
