Indian Rupee ends at 85.34/$; slips 25 paise on dollar recovery

Indian Rupee today: The domestic currency closed 25 paise weaker at 85.34 against the US dollar, after ending at 85.09 on Monday

The Indian Rupee closed lower on Tuesday, weighed down by a rebound in the dollar index and oil prices, alongside a decline in domestic equities.

 

The domestic currency closed 25 paise weaker at 85.34 against the US dollar, after ending at 85.09 on Monday, according to Bloomberg. During the previous session, the currency rose past the 85 mark and went as high as 84.82 against the greenback.

 

The local unit was expected to be in a range of 84.75 to 85.50, with an expectation of a Zomato outflow of $900 million due to the MSCI rebalancing, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. 

 

 

Asian currencies were mixed, with the offshore Chinese yuan down 0.1 per cent while the Korean won rose 0.2 per cent, according to Reuters. The dollar index is on track for its lowest level since July 2023, losing over 7 per cent so far this year.  

 

The US President Donald Trump, on Monday, extended the deadline for 50 per cent European Union tariffs until July 9. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.43 per cent at 99.36. 

 

The Dollar Index continuing to trade near the 99.00 level is acting as a tailwind for the rupee, Amit Pabari, managing director at CR Forex Advisors. "Add to that, subdued Brent crude prices are helping keep India's trade deficit under control." Moreover, the upcoming slew of initial public offerings is set to boost the FII inflows, further supporting the rupee.

 

However, speculation of a Reserve Bank of India (RBI) rate cut in the upcoming MPC meeting is also weighing on the short-term rupee, Pabari said. "The rupee is likely to face strong resistance near 85.50 levels and every uptick is a selling opportunity, while the immediate support would be 84.80-84.90."  Meanwhile, profit booking among select blue-chip stocks at higher levels dragged the benchmark equity indices lower on Tuesday. 

 

Crude oil prices gained after initial losses as the market weighed on the extension of the European Union tariff deadline. Brent crude price was up 0.31 per cent to $64.94 per barrel, while WTI crude prices were 0.23 per cent higher at 61.67, as of 3:50 PM IST.