The rupee was consolidated in a narrow range and settled on a low eight-pays day at 85.23 (tentative) against the US dollar on Tuesday.
Forex traders said the influx of foreign funds helped domestic forces. However, the recovery in oil prices has dented investors’ sentiment.
Additionally, concerns continued over economic headwinds from US monetary policy, which could weaken tariffs and demand.
In interbank foreign exchange, the domestic unit opened at 85.11, moving between the day’s high of 85.07 and the lowest of 85.23 against the greenback.
The unit ended the session at 85.23 (tentative) and recorded an eight-pays loss at the previous closure level on Tuesday after witnessing a winning streak in five straight sessions.
On Monday, the rupee rated 23 paise highly and settled at 85.15 against the US dollar.
In the last five trading sessions, Indian currency added 155 Paise since the closure mark of 86.68 against greenback on April 9th.
“The rupee is expected to be traded with positive bias in the increased risk appetite in the global market and increased new FII inflows. The weakness in the US dollar and the overall weakness in crude oil prices could further support the rupee. However, the purchase of the dollar could lead to rapid profits.
Meanwhile, the dollar index, which assesses the strength of the greenback against a basket of six currencies, traded 0.08% higher at 98.35.
Global oil benchmark Brent crude rose 1.52% in futures trade to $67.27 per barrel.
In the domestic stock market, the 30-share BSE Sensex rose to 187.09 points (0.24%) and settled at 79,595.59, while Nifty went to 41.70 points (0.17%) to 24,167.25.
Foreign institutional investors (FII) purchased $1,970.17 trillion worth of stock on a net basis on Monday, according to Exchange data.
Released on April 22, 2025
