Indian rupee depreciated against the US dollar on Monday as month-end dollar demand from importers continued to keep the American unit well bid. Besides, continued foreign fund outflows also dampened sentiments in the domestic markets. Foreign Institutional Investors (FIIs) sold stocks worth of Rs 1,979.96 crore on Friday. Traders were concerned as the RBI said that India's forex kitty declined by $1.18 billion to $695.48 billion during the week ended July 18, 2025. On the global front, U.S. dollar strengthened against other major currencies in the European session on Monday, after the United States announced the ‘biggest-ever’ trade deal with the European Union, under which a 15-percent tariff would apply across the board, including for Europe's crucial automobile sector, pharmaceuticals, and semiconductors.

Finally, the rupee ended at 86.68 (Provisional), depreciated by 16 paise from its previous close of 86.52 on Friday. The currency touched a high and low of 86.68 and 86.40 respectively.