Rupee rises 3 paise to close at 87.72 against U.S. dollar

The rupee consolidated in a narrow range to settle just 3 paise higher at 87.72 (provisional) against the U.S. dollar on Tuesday (August 12, 2025) amid a negative trend in domestic equities.

Forex traders said the rupee is trading in a tight range as a late decline in domestic markets and foreign fund outflows capped sharp gains for the domestic unit.

Moreover, there is an overall negative bias amid uncertainties over the trade tariff issue between India and the U.S.

At the interbank foreign exchange, the domestic unit opened at 87.70 and moved in a range of 87.59-87.72 during the day before settling at 87.72 (provisional), just 3 paise higher than its previous close.

On Monday (August 11, 2025), the domestic unit closed at 87.75 against the U.S. dollar.

Investors are in a wait-and-watch mode ahead of the U.S. CPI inflation data and are also awaiting cues from the U.S.-Russia talks on August 15, traders said.

“We expect the rupee to trade with a negative bias on account of the ongoing trade tariff war between India and the U.S. Sustained FII outflows may also pressurise the rupee.”

“However, weakness in the U.S. Dollar and declining crude oil prices may support the rupee at lower levels. Investors now focus on the U.S. and Indian inflation data this week. USD/INR spot price is expected to trade in a range of 87.40 to 87,” said Anuj Chaudhary, Research Analyst Commodities and Currencies, Mirae Asset Sharekhan.

Meanwhile, Brent crude prices rose 0.41% to $66.70 per barrel in futures trade.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.04% to 98.55.

On the domestic equity market front, Sensex dropped 368.49 points to settle at 80,235.59, while Nifty declined 97.65 points to close at 24,487.40.

Foreign Institutional Investors offloaded equities worth ₹1,202.65 crore on Monday (August 11, 2025), according to exchange data.