Weakness in the American currency helped the rupee to gain ground by 3 paise, against the U.S. dollar, to reach its provisional closing at 89.65 on Tuesday, December 23, 2025. But domestic unit gains were not too high because of increasing global crude oil prices and outflows of foreign capital which was still high, forex traders said.
The rupee gained marginally at the interbank foreign exchange market where it was trading at 89.67 against the dollar. It traded between a close of 89.65 and a narrow range of 89.59 to 89.85 before closing at 89.65 which is a slight improvement over its earlier trading position. The market players observed that though their relief was given by the weaker dollar, any considerable rise was restrained by the external forces.
The dollar index which tracks the performance of the greenback compared to a basket of 6 major currencies fell 0.34 at 97.95, as there is a general underperformance in U.S. currency. This crunch assisted the emergent market currencies such as the rupee to have some ground.
In the commodity market, Brent crude oil, the world standard, is 0.18 percent higher than the previous price of 62.18 per barrel in the futures market. The increased oil prices are also a worry to India, a great importer of crude oil since it is more likely to increase the trade deficit and strain the rupee.
There was mixed performance in the domestic equity markets. The yardstick Sensex fell by 42.64 in order to end at 85,524.84, whereas the Nifty was able to gain only by 4.75 points and closed the day at 26,177.15. The cautious market indicators and selling pressure in some of the heavyweight stocks drained market sentiment.
The foreign institutional investors (FIIs) also continued to reduce their exposure to the Indian equities and sold stocks of ₹457.34 crore on Monday, as per the exchange data. Constant FII outflows have been one of the main reasons behind the low potential in the rupee.
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