Mon Jan 20 11:25:37 UTC 2025: ## Rupee Strengthens Against Dollar, Despite FII Selling
**Mumbai, January 20, 2025** – The Indian rupee appreciated by 5 paise against the US dollar on Monday, closing at 86.55, driven by a decline in crude oil prices and a strengthening domestic equity market. This positive trend countered the impact of Foreign Institutional Investors (FIIs) who remained net sellers, offloading shares worth ₹3,318.06 crore on Friday.
The rupee opened strong at 86.48 and reached an intraday high of 86.46 before settling at 86.55. Analysts attributed the rupee’s strength to the weaker US dollar index and positive domestic market sentiment. However, Anuj Choudhary of Mirae Asset Sharekhan cautioned that underlying US dollar strength and importer demand could weaken the rupee, although further crude oil price corrections and continued gains in domestic markets may offer support.
The US dollar index fell 0.17% to 109.16, while Brent crude dropped 0.50% to $80.39 per barrel. Domestically, the BSE Sensex rose 0.59% to 77,073.44 points, and the Nifty gained 0.61% to 23,344.75 points.
India’s forex reserves, meanwhile, decreased by $8.714 billion to $625.871 billion in the week ending January 10, following a $5.693 billion drop the previous week. The rupee is expected to trade within a volatile range of 86.20-86.80 in the coming days.
First Piper 