The rupee remained almost unchanged, gaining only 1 paisa to reach 87.30 against the US dollar in early trade on Tuesday. This slight increase was attributed to a weaker American currency and lower crude oil prices. Despite these positive factors, volatile domestic equity markets driven by fears of a US recession and trade uncertainties dampened investor sentiment, according to forex traders.
Opening at 87.37, the rupee briefly touched 87.39 before strengthening to 87.30 against the greenback in early trading, marking a marginal gain of 1 paisa compared to its previous closing level. In the previous session, the rupee had depreciated by 36 paise to close at 87.31 against the US dollar.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six major currencies, was down by 0.20% at 103.75. On the commodities front, Brent crude, the global oil benchmark, saw a marginal increase of 0.01% to trade at $69.29 per barrel in futures trading.
In the local stock market, the BSE Sensex was trading 424.36 points lower at 73,690.81, a decrease of 0.57%. Similarly, the Nifty was down by 117.90 points, or 0.52%, at 22,342.40 points. Foreign institutional investors (FIIs) were net sellers of equities worth ₹485.41 crore on Monday.
Internationally, there are concerns over escalating trade tensions between the US and China. US President Donald Trump’s tariff policies have raised uncertainty among businesses, with the possibility of a recession looming. In response, China has imposed an additional 15% tax on key American farm products as a retaliatory measure. These developments have contributed to market volatility, leading to a sharp decline in US markets on Monday.
