Fri Jan 24 16:41:10 IST 2025: ## Rupee Strengthens Against Dollar Despite FII Sell-Off
**Mumbai, January 24, 2025** – The Indian rupee appreciated by 22 paise against the US dollar on Friday, closing at 86.22, despite sustained foreign fund outflows. This gain follows a 9-paise decline on Thursday. The strengthening was attributed to a weakening US dollar index and lower crude oil prices. However, analysts cautioned that the upcoming Union Budget will significantly influence future market sentiment and the rupee’s trajectory.
Foreign Institutional Investors (FIIs) continued their selling spree, offloading shares worth ₹5,462.52 crore on Thursday. This sell-off, coupled with comments from US President Donald Trump advocating for an immediate interest rate cut by the Federal Reserve, created some market uncertainty. While experts noted that the recent surge in the dollar index, partly driven by “Trump factor” uncertainty, is unlikely to persist, the overall market sentiment remains somewhat cautious.
Brent crude oil prices saw a slight increase, reaching $78.66 per barrel, amidst ongoing geopolitical tensions. Domestic equity markets also experienced a downturn, with the BSE Sensex falling 0.43% and the Nifty declining 0.49%. The interplay between global events, FII activity, and the upcoming budget will continue to shape India’s financial landscape in the coming days.
First Piper 