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The rupee pared initial losses and settled for the day higher by 24 paise at 95.46 (provisional) against the U.S. dollar on Tuesday, driven by positive domestic markets, a weaker greenback, and a fall in crude oil prices.
Forex traders said the overall weakness in the U.S. dollar on declining odds of a rate hike may support the rupee at lower levels.
The USD/INR pair remained largely range-bound around 95.50–96.00, with oil prices and Reserve Bank of India’s intervention likely to remain the key near-term drivers, they added.
At the interbank foreign exchange, the rupee opened at 95.74, then touched an intraday high of 95.40 and finally settled for the day at 95.46 (provisional) against the greenback, higher by 24 paise from its previous close.
On Monday, the rupee settled with a marginal gain of 1 paisa at 95.70 against the U.S. dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.96, lower by 0.04%.
Brent crude, the global oil benchmark, was trading lower by 2.99% at $89.41 per barrel in futures trade.
On the domestic market front, Sensex climbed 286.98 points to settle at 77,656.09, while the Nifty advanced 115.50 points to settle at 24,334.55.
Foreign institutional investors purchased equities worth Rs 1,181.66 crore on a net basis on Monday, according to exchange data.
On the domestic macroeconomic front, the Reserve Bank of India’s special USD-INR forex swap facility for FCNR(B) deposits, Overseas Foreign Currency Borrowings (OFCB) and External Commercial Borrowings (ECB) have mobilised foreign exchange inflows of $73 billion as of August 21, 2026, reflecting strong backing from Non-Resident Indians (NRIs).
Published – August 25, 2026 04:36 pm IST
