Rupee Flat at 85.79 Against US Dollar in Early Trade

Mumbai : The Indian rupee opened flat at 85.79 against the US dollar in early trade on January 6, 2025, following a cautious market sentiment. Despite positive domestic equity markets, sustained foreign capital outflows and a higher dollar index continued to weigh on the currency.

Forex traders noted that while falling crude oil prices provided some support for the rupee, concerns over a stronger dollar and rising US treasury yields kept investors wary. On December 27, the rupee had touched a lifetime intra-day low of 85.80 against the dollar.

The rupee opened at 85.77 and soon slipped to its previous session’s closing level of 85.79. On Friday, it depreciated by 4 paise, closing at 85.79. Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading slightly lower at 108.74.

Crude oil prices also showed a marginal decline, with Brent crude falling by 0.18% to USD 76.37 per barrel. The domestic equity market showed some positive movement, with the 30-share BSE Sensex rising by 192.52 points (0.24%) to 79,415.63, and the Nifty up by 61.10 points (0.25%) to 24,065.85.

Foreign institutional investors (FIIs) continued to offload stocks, net selling Rs 4,227.25 crore on Friday, contributing to the pressure on the rupee. Additionally, India’s foreign exchange reserves decreased by USD 4.112 billion to USD 640.279 billion during the week ended December 27.