Delilah D’Souza

Daijiworld Media Network –Mumbai

Mumbai, May 20: The Indian rupee depreciated by 13 paise, opening at 85.47 and settling at 85.55 against the US dollar in early trade on Tuesday. This decline is attributed to muted domestic equities and foreign fund outflows.

Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP, noted that the rupee is expected to trade within a range of 85.25 to 85.75 for the day, citing a lack of fresh market indicators to influence its direction.

Forex traders highlighted that the recent surge in the US 10-year Treasury yield reflects mounting concerns over fiscal and monetary policies, driving borrowing costs higher and pushing the Dollar Index lower.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, was trading slightly lower at 100.36.

In the domestic equity market, the 30-share BSE Sensex advanced 55.37 points to 82,114.79, while the NSE Nifty rose 10.65 points to 24,956.10.

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

Brent crude, the global oil benchmark, edged up by 0.02% to $65.55 per barrel in futures trade.

Market participants anticipate that the rupee will remain within the 85.25 to 85.75 range in the near term, barring any significant global developments. Factors such as US fiscal policy, potential trade tariffs, and movements in global oil prices will continue to influence the currency's trajectory.