Rupee rises after two days of record lows; opens 5 paise higher at 88.15/$

Indian Rupee today: The domestic currency opened 5 paise higher at 88.15 against the dollar on Tuesday, according to Bloomberg

The Indian rupee advanced on Tuesday after hitting record lows for two consecutive sessions, as foreign outflows continued to weigh on the currency.

 

The domestic currency opened 5 paise higher at 88.15 against the dollar on Tuesday, according to Bloomberg. So far this year, the rupee has depreciated 2.93 per cent, making it the worst performer among Asian peers.

 

The currency hit a record low of 88.33 yesterday before recovering to close flat, likely on Reserve Bank of India (RBI) intervention, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. It opened higher on Tuesday, with sentiment remaining dollar-bullish unless it closes below 87.95, he said. 

 

   

RBI remains the sole dollar supplier, while upcoming initial public offerings (IPOs) and inflows are awaited to support the rupee, Bhansali said. "Dips are seen as buying opportunities, while exporters may wait for higher levels to sell or stop out below 87.95." 

 

Investors are closely watching the Shanghai Cooperation Organisation (SCO) meeting of leaders in Tianjin, with tariff uncertainty weighing on sentiment. Addressing the Summit, the Prime Minister highlighted India's approach to strengthening cooperation under the SCO framework. 

 

Foreign portfolio investors (FPIs) continue to pare holdings in both equities and debt, amid concerns that India’s trade deficit could widen following the Donald Trump administration’s 50 per cent tariff on Indian goods, among the steepest globally. So far this year, FPIs sold equities worth nearly ₹1.4 trillion, as per NSDL data.  

 

Meanwhile, India’s gross domestic product (GDP) grew 7.8 per cent in the first quarter (April-June) of the financial year 2025-26 (FY26), hitting a five-quarter high. However, Nominal GDP increased 8.8 per cent to ₹86.05 trillion during the June quarter. 

 

The dollar index, a measure of the greenback against a basket of six major currencies, was up 0.05 per cent at 97.81, a day after a US federal appeals court ruled that US President Donald Trump's trade tariffs were illegal. With job data, inflation print and the Federal Reserve’s rate, traders will face a key test this month. 

 

In commodities, crude oil prices rose amid concerns that intensifying air strikes in the Russia-Ukraine war could lead to supply disruptions. Brent crude price was up 0.47 per cent at 68.47 per barrel, while WTI crude prices were higher by 1.45 per cent at 64.94 per barrel, as of 9:07 AM IST.