Rupee traded in a narrow range on Tuesday, slipping 8 paise to 84.38 against the US dollar in early trade amid a stronger dollar index, weakness in Asian currencies, and lingering geopolitical tensions between India and Pakistan.
At the interbank foreign exchange, the rupee opened at 84.28 and moved between an early high of 84.26 and a low of 84.38 against the greenback. The domestic currency had closed at 84.30 on Monday, registering a 27 paise gain.
Forex traders said that while the USD/INR pair remained under pressure from global uncertainties and a cautious recalibration of risk appetite, it was also supported by falling crude oil prices and continued foreign fund inflows.
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Brent crude, the global oil benchmark, rose 1.53 per cent to USD 61.15 per barrel in futures trade. The easing energy prices are seen as positive for India, a major oil importer, helping to cushion pressure on the rupee.
Meanwhile, the dollar index—which measures the greenback’s strength against a basket of six major currencies—was trading marginally lower at 99.79, down 0.03 per cent.
Market insights
According to Amit Pabari, Managing Director at CR Forex Advisors, a shift in global sentiment has emerged following US President Donald Trump’s unexpected announcement of a 100 per cent tariff on all foreign-made movies. While the move has limited direct economic impact, it signals a return of policy unpredictability that is spooking global markets, he noted.
He added that positive signals on a potential US-India trade deal and the recent OPEC+ decision to raise output for the second straight month could offer some support to the rupee in the near term.
“Given the crosscurrents, USD/INR is expected to remain volatile. Near-term support lies around 83.75, with upward potential toward 84.80 and possibly 85.20, depending on how the global narrative unfolds in the days ahead,” Pabari noted.
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Stock market summary
On the Indian equities front, stock markets opened on a mixed note on Tuesday. The BSE Sensex rose 123.45 points or 0.15 per cent to 80,920, while the Nifty50 dipped marginally by 1.70 points or 0.01 per cent to 24,459.45. Broader markets outperformed, led by smallcap gains.
Investor sentiment was buoyed by sustained foreign institutional investor (FII) activity. FIIs were net buyers on Monday, purchasing equities worth Rs 497.79 crore, according to exchange data.
