The Indian Rupee lost some of the initial gains on Tuesday to stand at par with the US dollar, with the greenback gaining strength in international markets, even as it was anticipated that the country would receive further foreign inflows due to the ongoing initial public offering (IPOs).
Market reports show that the domestic currency closed the session at 88.78 per dollar, which is the same as it had been at the end of Monday. The rupee had briefly gained ground in the initial trade, but then it lost the momentum as the dollar strengthened. Up to 2025, the rupee has fallen by 3.7 percent, with a record low of 88.80 against the dollar reached last week.
According to currency analysts, IPO-related inflows offered some buffer, although the strength of the dollar and its long-run risk-off mood ensured that the rupee failed to keep its profits. The US dollar index, which measures the greenback against six leading currencies, increased 0.34 percent to 98.44 on new investor interest in safe-haven assets. Nevertheless, the bigger picture of the dollar still looks downward as the anticipation of the Federal Reserve cutting the rate in the later stages of the year increases following the reports of poorer results in the US labour market.
Regarding the commodity market, the price of crude oil shifted slightly downward when OPEC+ declared a small increase in production in November. Brent fuel futures fell 0.27 percent, to $65.29 per barrel, and WTI crude fell 0.32 percent, to 61.49 per barrel, at 3.35 pm IST.
According to the market analysts, within the next few days, the rupee will tend to stay in the range, with the world and foreign inflows of capital dominating. Further appreciation of the dollar may strain the currencies of the emerging markets like the rupee, though sustained inflows of IPOs and the possible involvement of the FII may be helpful in the short term.
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