Rupee Holds Steady at 85.97; RBI Liquidity Snapshot Reveals Mixed Signals

India’s financial markets opened July 15, 2025, with the rupee trading nearly flat at 85.97 against the US dollar, reflecting cautious sentiment amid global tariff uncertainties and foreign fund outflows. Meanwhile, the Reserve Bank of India released key liquidity metrics that offer a glimpse into the evolving money market dynamics.

 

Currency Movement:

- The rupee opened at 85.96 and settled at 85.97, down 17 paise from the previous close of 85.80.

- The dollar index rose 0.08% to 97.93, strengthening the greenback against major currencies.

- Brent crude futures dipped 0.19% to USD 70.02 per barrel, offering limited support to the rupee.

 

RBI Liquidity Update:

- Banks’ aggregate cash balances stood at ₹10.04 trillion on July 14, indicating ample liquidity.

- The central bank reported zero surplus cash balance from the government for auction purposes.

- ₹58.81 billion was refinanced by RBI on July 14, reflecting short-term liquidity adjustments.

- Banks borrowed ₹8.38 billion via the Marginal Standing Facility, suggesting mild overnight funding pressure.

 

Market Sentiment:

- FIIs sold ₹5,104.22 crore worth of equities on July 12, continuing their cautious stance.

- India’s forex reserves fell by USD 3.049 billion to USD 699.736 billion for the week ended July 4.

- Equity indices opened lower, with Sensex down 295 points and Nifty slipping 71 points.

 

Outlook:

- Analysts expect the rupee to trade within the 85.50–86.00 range amid tariff negotiations and global volatility.

 

Sources: The Hindu, HDFC Sky, Business Standard, Rediff Moneynews, Economic Times.