Currency Market News: Rupee ends 8 paise lower at 85.23 against US dollar

Rupee settled 8 paise lower at 85.23 (provisional) against the US dollar on Tuesday, consolidating in a narrow range as mixed global cues kept investors cautious. While domestic equities remained supportive and foreign fund inflows continued, a rebound in crude oil prices and dollar short-covering limited gains for the local unit.

At the interbank foreign exchange, the rupee opened at 85.11 and moved between 85.07 and 85.23 through the day, ultimately ending its five-day winning streak. On Monday, the currency had appreciated 23 paise to close at 85.15 against the greenback. Over the last five trading sessions, the rupee had rallied 155 paise from its April 9 closing level of 86.68.

Forex traders pointed to sustained FII inflows as a cushion for the rupee, though rising crude and broader economic concerns — including US monetary policy and tariff-related headwinds — weighed on overall sentiment.

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Commenting on the day's movement, Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, said, " Despite today's muted movement and sideways range, the broader short-term view for the rupee remains positive, with any minor weakness likely to act as a support zone rather than a reversal."

Trivedi added, "The market is currently consolidating after the strong rally seen in the past sessions, and with no fresh domestic or global triggers today, the rupee stayed range-bound.
Rupee range is seen between 84.75–85.25, with the bias still favoring appreciation as long as the dollar index remains subdued."

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, also echoed a positive outlook for the domestic currency. "We expect the rupee to trade with a positive bias on rise in risk appetite in global markets and fresh FII inflows. Weakness in the US dollar and overall weakness in crude oil prices may further favour the rupee. However, importer buying of dollars may cap sharp gains. USDINR spot price is expected to trade in a range of 84.80 to 85.30."

Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.08 per cent at 98.35. Brent crude futures gained 1.52 per cent to USD 67.27 per barrel in global trade.

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Equity markets extend winning run

On the equities front, Indian benchmarks ended higher for the sixth straight session on April 22, aided by strong buying in FMCG, financial, auto, and metal stocks, despite a soft handover from global markets.

The Sensex rose 0.21 per cent to close at 79,576, while the Nifty 50 advanced 0.14 per cent to settle at 24,158. Foreign institutional investors (FIIs) remained net buyers, investing Rs 1,970.17 crore in Indian equities on Monday, according to exchange data.

(With inputs from PTI)