The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.19% at 100.23. File
| Photo Credit: Reuters

The rupee depreciated 21 paise to close at 85.63 (provisional) against the U.S. dollar on Tuesday (May 20, 2025), on weak domestic markets and a bounce back in U.S. treasury yields.

Forex traders said the recent surge in the U.S. 10-year yield reflects mounting concerns over fiscal and monetary policies, driving borrowing costs higher.

Foreign fund outflows and positive crude oil prices also weighed on the rupee. However, the weak U.S. dollar index cushioned the downside, they said.

At the interbank foreign exchange, the domestic unit opened at 85.47 and moved between an intra-day high of 85.39 and a low of 85.65 against the greenback. The unit ended the session lower at 85.63 (provisional), registering a fall of 21 paise over its previous closing level.

On Monday (May 19, 2025), the rupee appreciated 15 paise to settle at 85.42 against the U.S. dollar.

“We expect the rupee to trade with a negative bias amid FII outflows and weak domestic markets. However, a declining U.S. dollar index may support the rupee at lower levels,” Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan said, adding that USD-INR spot price is expected to trade in a range of 85.30 to 85.90.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.19% at 100.23.

Brent crude, the global oil benchmark, fell 0.14% to $65.45 per barrel in futures trade.

In the domestic equity market, the 30-share BSE Sensex declined 872.98 points, or 1.06%, to close at 81,186.44, while the Nifty fell 261.55 points, or 1.05%, to 24,683.90.

Foreign institutional investors (FIIs) offloaded equities worth ₹525.95 crore on a net basis on Monday (May 19, 2025), according to exchange data.