Rupee's Fifth Consecutive Decline

The Indian rupee fell for the fifth straight day, closing at 86.38 against the US dollar, amidst ongoing uncertainties over the India-US trade deal and persistent foreign institutional investor (FII) outflows.

Market Dynamics

Opening at 86.26, the rupee touched an intra-day high of 86.22 and a low of 86.41 before settling at 86.38. Forex traders noted that while lower crude oil prices and a weaker dollar provided some support, negative domestic equity trends and FII outflows limited gains.

Expert Insights

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, mentioned, "The rupee is expected to trade with a slight negative bias due to trade deal talks, but support may come from a weaker American currency and softer crude oil prices." Dilip Parmar, Research Analyst at HDFC Securities, added, "The depreciation was driven by risk-averse sentiment and consistent dollar demand."

Upcoming Negotiations

With the August 1 deadline approaching for the suspension of Trump-era tariffs, a US team is set to visit India for further negotiations. The outcome could significantly impact the rupee's trajectory.

Global and Domestic Indicators

The dollar index slightly fell to 97.82, and Brent crude futures declined to $68.56 per barrel. Domestically, the Sensex and Nifty also saw minor drops, with FIIs net selling equities worth Rs 3,548.92 crore.