The rupee fell 5 paise to 89.73 against the US dollar in early trade on Tuesday due to FII outflows and a weak opening in the domestic stock markets.
However, a weaker dollar and a fall in global crude oil prices prevented major losses in the local unit, according to forex traders.
At the interbank forex exchange, the local unit opened at 89.67 against the dollar but lost ground to settle at 89.73, down 5 paise from the previous close.
The rupee gave up initial gains on Monday to settle slightly up 1 paisa at 89.68 against the US dollar as support from positive domestic equities was offset by a rebound in crude oil prices.
“The rupee broadly remains in the range of 89-90 and a little tighter at 89.30-80. Weekly US employment numbers, GDP, consumer confidence data and PCE price index data will be reviewed ahead of the Christmas holidays,” said Anil Kumar Bhansali, head of treasury and managing director, Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was down 0.20 percent at 98.08.
Brent crude, the global oil benchmark, traded 0.12 percent lower at $61.99 a barrel in futures trading.
In the domestic stock market, Sensex fell 116.57 points to 85,450.91 in early trade while the Nifty fell 27.15 points to 26,145.25.
Foreign institutional investors offloaded shares worth ₹457.34 crore on Monday, according to exchange data.
Meanwhile, India and New Zealand announced on Monday the completion of negotiations on a free trade agreement under which a wide range of domestic goods in sectors such as textiles, footwear, engineering and marine products will be granted duty-free access to New Zealand.
Published on December 23, 2025