Due to FPI withdrawals, the rupee begins 16 paise down against the dollar at 85.75.

Due to unprecedented withdrawals from Indian bonds and selling by foreign investors, the rupee began 16 paise down on June 4 and extended its downward trend for a second day. After closing the previous session at 85.59 versus the dollar, the currency began at 85.75. According to currency experts, dollar demand and equities outflows have put pressure on the rupee in recent sessions. On June 3, domestic institutional investors (DIIs) purchased scrips valued at Rs 5,908 crore, while foreign institutional investors (FIIs) sold shares valued at Rs 2,854 crore. DIIs net sold shares valued at Rs 9,796 crore and purchased shares valued at Rs 15,704 crore. According to preliminary statistics, FIIs sold stocks for Rs 19,917 crore and purchased shares for Rs 17,063 crore. On June 4, 2025, the Indian Rupee opened 16 paise lower at ₹85.75 against the US Dollar, continuing its downward trend for the second consecutive day. The Rupee had previously closed at ₹85.59 on June 3, 2025. The decline in the Indian currency is largely attributed to significant withdrawals from Indian bonds and foreign investors selling off stocks. The consistent demand for the US Dollar and the outflows from equities have put pressure on the Rupee in recent sessions, making it vulnerable to further depreciation. Foreign Institutional Investors (FIIs) were active sellers, offloading stocks worth ₹2,854 crore on June 3, while Domestic Institutional Investors (DIIs) purchased stocks valued at ₹5,908 crore. Despite the DIIs' net purchases, the selling pressure from FIIs continued to weigh on the Rupee, contributing to its overall weakness. Additionally, the Rupee’s performance was also influenced by fluctuations in the global currency markets and ongoing concerns in international markets, particularly related to the US economy and fiscal policy. Market analysts are closely monitoring the situation, as the Rupee is now approaching key support levels. The strong demand for the US Dollar, coupled with global market uncertainties, has placed the Rupee under further strain. The local currency's performance will largely depend on foreign investor sentiment and the ongoing economic conditions both domestically and globally. Analysts suggest that if the Rupee falls below ₹86, it could trigger further demand for dollars, pushing the currency even lower. In the face of these challenges, currency experts expect volatility to continue, with the Rupee likely to remain under pressure unless there is a significant shift in foreign investment flows or a change in global economic conditions. As the situation unfolds, the market will be closely watching both the RBI's policy responses and the broader global financial landscape to assess the potential for stabilization or further declines in the Rupee.