Asian Currency

Rupee closes 1% down at 86.95 against US dollar

February 18, 2025


The rupee closed a shade below the 87-mark on Tuesday as the Indian currency remained under pressure due to sell-off in local equities by foreign institutional investors (FIIs) and higher dollar demand from importers.

The rupee closed at 86.95 versus the US dollar, about 1% weaker as compared to the previous day’s close of 86.8775.

There was higher dollar demand from companies looking to accumulate dollars to cover their payables before the year-end, a foreign currency dealer said.

The rupee opened at 86.9050 and weakened to 86.9875. Dealers said the central bank intervened at this level to prevent the currency from breaching the 87 level.

FIIs sold local stocks worth Rs 3,938 crore on a net basis on Monday, according to data from stock exchanges.

Growfast


“If it crosses the 87-mark, then 87.20 is very much on the cards,” said another dealer.The dollar index rose 0.35% to 106.95, showing the US currency’s strength against a basket of six currencies.



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