Fri Jul 18 11:07:05 UTC 2025: **Summary:**

On July 18, 2025, the Indian rupee weakened against the U.S. dollar, settling at 86.16, a decrease of 4 paise. This was attributed to foreign fund outflows, rising global crude oil prices, and a slump in domestic equity markets. However, a weaker U.S. dollar prevented a more significant depreciation. Traders anticipate continued rupee weakness until a trade deal with the U.S. is finalized, with potential for the rupee to reach 87 if the deal fails. Negotiations between India and the U.S. are ongoing. Meanwhile, Brent crude prices rose, the dollar index weakened, and Indian stock markets experienced significant declines.

**News Article:**

**Rupee Slips Amid Foreign Outflows, Oil Price Hike, and Stock Market Decline**

**Mumbai, July 18, 2025** – The Indian rupee weakened to 86.16 against the U.S. dollar on Friday, a drop of 4 paise, as foreign investors pulled funds from the country and global crude oil prices surged. A steep decline in domestic equity markets further weighed on the currency.

The rupee opened strong at 85.99 but ultimately succumbed to pressure. Forex traders noted that a softer U.S. dollar, down 0.36% against a basket of major currencies, limited the extent of the rupee’s fall.

“Foreign investors turned sellers, and dollar buyers bought heavily, driving the rupee lower before the Reserve Bank of India intervened to moderate the decline,” stated Anil Kumar Bhansali of Finrex Treasury Advisors LLP.

Bhansali expects the rupee to remain under pressure until India and the U.S. finalize a trade deal. “If the deal falls through, we could see the rupee slide to 87. We anticipate a trading range of 85.90-86.40 on Monday,” he added.

Negotiations between the two countries are reportedly ongoing to resolve outstanding issues, following recent comments from U.S. President Donald Trump indicating a trade pact was “very close.”

Adding to the pressure, Brent crude oil jumped 1.17% to $70.33 per barrel. Indian equity markets also suffered, with the Sensex tumbling 501.51 points to 81,757.73 and the Nifty falling 143.05 points to 24,968.40. Foreign institutional investors were net sellers of equities, offloading ₹3,694.31 crore worth of shares on Thursday.

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