Rupee rebounds by 17 paise vs dollar, off 90 mark: Key things to know

INR vs USD: The rupee overcame its initial losses and ended the day in the green, gaining 17 paise against the US dollar on Tuesday, as US currency and crude oil prices softened from their lofty levels.

Earlier, the Indian rupee traded lower on Tuesday amid firm dollar demand and cautious risk sentiment in global markets. The currency has depreciated around 5 per cent in 2025 so far, weighed down by the weakness in trade and foreign portfolio flows, along with the impact of a missing trade deal with the U.S.

The Rupee closed at 89.88 against the US dollar on Tuesday. At the same time, the dollar index, which reflects the greenback's strength against a basket of six currencies, was down 0.10 per cent at 98.98.

Market analyst outlook on Rupee

According to Dilip Parmar, Senior Research Analyst, HDFC Securities, the rupee has demonstrated a significant rebound, successfully dismissing a two-day decline to emerge as the top-performing currency among its Asian peers.

Parmar said the appreciation was driven by the unwinding of dollar long positions. Further supporting the rupee was a favourable backdrop of lower global crude oil prices and stronger regional currencies.

However, despite this wanted reprieve, it is not yet out of the woods, as the fundamental imbalance persists, with the demand for the dollar continuing to outstrip its available supply.

The market analyst noted that technically, the spot USD-INR faces a crucial resistance level at 90.30, while finding a strong support base at 89.70.

On the domestic equity market front, Indian equities ended sharply lower on Tuesday, with the BSE Sensex falling 436.41 points to close at 84,666.21, while the Nifty-50 slipped 120.90 points to 25,839.65.

Investors remained cautious ahead of the US Federal Reserve’s rate decision and ongoing uncertainty surrounding a potential US-India trade agreement.

Furthermore, both India and the US will begin discussing matters pertaining to the first phase of the proposed bilateral trade agreement for three days, starting from December 10, in New Delhi.