USD/INR: Rupee Weakens to Trade at 86.32 Amid Strengthening Dollar and Foreign Fund Outflows

On January 24, 2025, the Indian rupee opened at 86.32 and fluctuated between a high of 86.30 and a low of 86.52 during the session, pressured by the strengthening American currency and a continued outflow of foreign funds

Dollar Index Trades Lower

The dollar index, which measures the greenback’s strength against a basket of six major currencies, fell by 0.25%, reaching 107.84. The robust performance of the dollar put additional pressure on the rupee.

Oil Futures See First Loss in 2025

Oil prices are poised for their first weekly drop of the year as U.S. President Donald Trump signalled plans to pressure Saudi Arabia and OPEC to lower prices. West Texas Intermediate (WTI) crude dropped toward $74 a barrel, down nearly 5% this week, while Brent crude closed near $78.

Trump’s Trade and Energy Strategy Sparks Volatility

In his first week in office, Trump escalated trade tensions by threatening tariffs on key trading partners, including Canada, Mexico, and China. He also pledged to press OPEC members to reduce oil prices, contributing to the biggest weekly drop in oil futures since November.

While the strengthening dollar continues to weigh on emerging market currencies like the rupee, a mix of domestic and global factors—including Trump’s policies—has heightened market uncertainty.

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