Mumbai, July 2: The rupee pared initial gains and settled for the day on a negative note, lower by 19 paise at 95.35 against the US dollar on Thursday, as the support from easing crude oil prices was negated by robust dollar demand from importers and corporate hedgers.
Forex traders said the Indian rupee opened higher on an overnight decline in the US dollar following decline in crude oil prices. However, the rupee lost its initial gains on FII outflows and dollar demand from hedgers.
At the interbank foreign exchange market, the rupee opened at 94.95 against the American currency and traded in a range of 94.90-95.42 during the session.
The rupee finally closed at 95.35, registering a decline of 19 paise from its previous close. On Wednesday, the rupee depreciated 60 paise to close at 95.16 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.00, lower by 0.38 per cent.
Foreign investors extended their selling spree in June, withdrawing Rs 49,340 crore (USD 5.16 billion) from Indian equities, triggered by a combination of early-month global risk aversion, a preference for developed markets, soaring US bond yields, and stretched valuations in the domestic market.
According to data from the Central Depository Services (India) Ltd, the total withdrawals by Foreign Portfolio Investors (FPIs) from Indian equities have surged to Rs 2.7 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore pulled out during the entire calendar year 2025. (PTI)
