Rupee Rises 17 Paise to Close at 85.59 Against US Dollar

Rupee appreciated 17 paise to close at 85.59 against the US dollar on Tuesday, supported by weakness of the American currency in the overseas market and a positive tone in the domestic equities amid rise in risk appetite.

Forex traders said the US dollar is trading at lowest levels since February 2022 as President Donald Trump's growing influence on Federal Reserve policy revived fears over the central bank's independence.

Moreover, Brent crude prices remained subdued, offering a buffer to India's import bill and helping cool inflation.

At the interbank foreign exchange, the domestic unit opened at 85.66 against the greenback. During the day, it witnessed an intraday high of 85.34. The domestic unit settled for the day at 85.59, registering a rise of 17 paise over its previous close.

On Monday, the rupee settled 26 paise down at 85.76 against the dollar.

"We expect the rupee to gain on the decline in US dollar and rise in risk appetite in global markets. Gold is trading at lowest levels since February 2022 and 10-year US bond yields briefly slipped below 4.2%," Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan said.

"However, recovery in crude oil prices may cap sharp gains. Traders may take cues from ISM manufacturing PMI, and JOLTS job data from the US and Fed Chair Jerome Powell's speech," Choudhary said, adding that "USD-INR spot price is expected to trade in a range of 85.20 to 85.85." Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.46% to 96.43.

Brent crude, the global oil benchmark, went down 0.24% to $66.58 per barrel in futures trade.

In the domestic equity market, Sensex advanced 90.83 points or 0.11% to 83,697.29, while Nifty rose 24.75 points or 0.10% to 25,541.80.

Foreign institutional investors (FIIs) offloaded equities worth ₹1,970.14 crore on a net basis on Tuesday, according to exchange data.

On the domestic macroeconomic front, India's manufacturing sector growth rose to a 14-month high of 58.4 in June marked by improved trends in output and new orders, alongside a record upturn in employment, a monthly survey showed on Tuesday.

The seasonally adjusted HSBC India Manufacturing Purchasing Managers' Index – an indicator of sector performance - was 57.6 in May.

Meanwhile, the government's gross GST collections increased by 6.2% to over ₹1.84 lakh crore in June but slipped below the ₹2 lakh crore mark recorded in the previous two months.

Gross GST (Goods and Services Tax) collections stood at ₹1,73,813 crore a year ago, as per government data released on Tuesday.

Another set of data released on Monday showed India's industrial production growth, however, slowed to a nine-month low of 1.2% in May 2025 due to poor performance of manufacturing, mining and power sectors caused by the early onset of monsoon.

The government's fiscal deficit fell to 0.8% of the full-year target at the end of May, mainly due to a whopping ₹2.69 lakh crore dividend received from the Reserve Bank of India.