Currency Market News: Rupee ends marginally lower at 85.25 against US dollar

Rupee ended Tuesday’s session 2 paise lower at 85.25 (provisional) against the US dollar, weighed by the recovery in the greenback and renewed geopolitical tensions between India and Pakistan. However, a fall in crude oil prices and firm domestic equity markets helped limit further losses in the local unit.

At the interbank foreign exchange, the rupee opened at 85.06 and witnessed an intra-day high of 84.96 and a low of 85.40 against the US dollar. The unit finally settled at 85.25, down 2 paise from Monday’s close of 85.23, when it had gained 18 paise.

"We expect the rupee to remain under pressure amid uncertainty over trade tariffs and the ongoing geopolitical tensions between India and Pakistan," said Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan.

Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities., said, "Rupee traded weak by 0.20rs at 85.18 as capital markets took a breather after recent gains, leading to some outflows and pressure on the rupee. The dollar index remained slightly positive near 99.30$, adding to the downside. Additionally, geopolitical tensions near India's western border have kept the rupee under pressure.

"Participants will keep a close watch on US Non-Farm Payrolls and Unemployment data this week, which could provide fresh cues for global currency movements," he said. "Rupee range is expected between 84.70–85.25 with volatility driven by both global data and regional developments," he added.

Also Read:Currency Market News: Rupee strengthens 27 paise to 84.96 vs dollar on robust fund inflows

Choudhary also noted that a positive tone in domestic markets and foreign fund inflows may support the rupee at lower levels. Traders will keep an eye on the US job openings and labour turnover survey (JOLTS) and CB consumer confidence data for further cues.

"USD-INR spot price is expected to trade in a range of 84.90 to 85.60," he added.

Also Read: Final Trade: Flat close for markets; Sensex up 70 pts, Nifty ends at 24,336

On the broader market front, benchmark indices ended the session with mild gains amid mixed global cues. The BSE Sensex rose 68.71 points to close at 79,441.45, while the Nifty50 settled at 24,336.40, up 20.55 points.

Tech heavyweights including TCS, Infosys, and HCL Tech supported the gains, along with strength in ONGC and Reliance Industries. The Nifty IT index advanced 0.9 per cent. However, weakness in pharma and metal sectors capped the overall upside. Dr Reddy’s, Cipla, Hindalco, and JSW Steel were among the top drags.

Foreign institutional investors (FIIs) remained net buyers in the equity markets, purchasing shares worth Rs 2,474.10 crore on Monday, as per exchange data. In commodities, Brent crude prices slipped 1.64 per cent to USD 64.78 per barrel in futures trade, lending some support to the rupee.

On the macroeconomic front, India's industrial production growth remained largely unchanged at 3 per cent in March on a sequential basis. However, it declined from 5.5 per cent on a year-on-year comparison due to weaker performance in the manufacturing, mining, and power segments.

Meanwhile, in a key trade development, US Treasury Secretary Scott Bessent said that India could be among the first nations to finalise a bilateral trade deal with the United States to avoid reciprocal tariffs proposed by President Donald Trump.

(With inputs from AP)

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