Currency Market News: Rupee slips 23 paise to 85.84 against US dollar in early trade

Rupee weakened by 23 paise to 85.84 against the US dollar in early trade on Tuesday, as month-end demand for the greenback from importers put pressure on the currency.  Despite support from positive domestic equities and foreign fund inflows, challenges such as liquidity constraints and concerns over reciprocal tariffs continue to weigh on the rupee.  

At the interbank foreign exchange, the rupee opened at 85.59 against the dollar but later slipped to 85.84, marking a 23 paise decline from its previous close.  

On Monday, the rupee had gained 37 paise to settle at 85.61, erasing all its losses for 2025. Over the last seven trading sessions, the domestic currency has strengthened by 154 paise.  

Also Read: Rupee rallies for seven consecutive sessions, surges by 31 paise to close at 85.67 vs dollar

Meanwhile, the US dollar index, which measures the dollar against a basket of six major currencies, rose 0.05 percent to 104.31. Global crude oil prices also inched up, with Brent crude trading 0.01 percent higher at $73.01 per barrel in futures trade.  

Also Read: First Trade: Indices rally for 7th session, Nifty at 23,751, Sensex adds 375 pts.

Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, noted that renewed foreign portfolio investor buying has contributed to the rupee’s recent gains.

"As we approach the month-end, there could be a sharp fall in the rupee due to month-end positioning, unless the Reserve Bank of India has some other plans," Bhansali said. "Exporters are waiting for better levels to hedge. However, if 85.50 breaks decisively then maybe we are approaching 84.75", he added.

Stock Market Summary: Sensex, Nifty extend gains

Meanwhile, Indian equities opened on a strong note, driven by improved global sentiment and easing concerns over tariffs. The Sensex rose 0.48 per cent, gaining 375.25 points to reach 78,359.63, while the Nifty climbed 0.39 per cent, adding 92.75 points to trade at 23,751.1.

(With inputs from PTI)