Currency Market News: Rupee slips by 13 paise to Rs 85.74 vs US dollar

Rupee ended its seven-session winning streak on Tuesday, closing 13 paise lower at Rs 85.74 (provisional) against the US dollar. Increased demand for dollars from importers and the greenback’s recovery against major global currencies weighed on the domestic currency.  

Forex traders noted a shift in sentiment towards risk aversion, which contributed to the rupee's decline. However, foreign fund inflows and mixed-to-positive domestic market trends helped limit further losses.  

At the interbank foreign exchange, the rupee opened at Rs 85.59, briefly touching a high of Rs 85.58 before sliding to a low of Rs 85.84. It finally settled at Rs 85.74, down from Monday’s close of Rs 85.61. Over the last seven sessions, the rupee had gained Rs 1.54, reversing its 2025 losses.  

Market expert insights  

Jateen Trivedi, VP Research Analyst at LKP Securities, said the rupee’s decline was driven by minor profit booking after its recent strong run. Despite robust foreign institutional investor (FII) inflows, profit-taking in equities impacted the currency movement.  

"Looking ahead, US GDP numbers and PCE & Core PCE price index data will be key drivers for currency movement. The rupee range is expected between 85.45-86.25, with global cues and capital flows dictating further moves," Trivedi noted.  

Dilip Parmar, Research Analyst at HDFC Securities, pointed out that higher dollar demand from importers and the greenback’s strength weighed on the rupee. He expects some bargain buying as the financial year-end approaches.  Technically, the USD/INR pair has support at Rs 85.40 and resistance at Rs 86.25, Parmar added.  

Global indicators  

The dollar index, which tracks the greenback against six major currencies, slipped 0.02% to 104.24. Meanwhile, Brent crude futures rose 0.68 per cent to 73.50  per barrel.  FIIs continued their buying spree, purchasing equities worth Rs 3,055.76 crore on Monday, as per exchange data.  

Stock market summary  

Indian equity markets gave up early gains to close flat on Tuesday as investor caution prevailed amid uncertainty over US trade policy. The Sensex inched up 32.81 points to settle at 78,017.19, while the Nifty 50 edged higher by 10.30 points to close at 23,668.65.  

Both indices had rallied earlier, with the Sensex climbing nearly 700 points before profit booking erased most gains.

 (With inputs from agencies)