Mumbai: The rupee snapped its seven-session rally and settled with a loss of 11 paise at 85.72 against the US dollar on Tuesday, as increased demand for dollars from importers, coupled with the greenback’s recovery against major currencies, weighed on the rupee.
Forex traders said the Indian rupee halted its seven-day winning streak, reflecting a shift in market sentiment towards risk aversion. However, mixed-to-positive domestic markets and foreign fund inflows cushioned the downside.
At the interbank foreign exchange, the rupee opened at 85.59 and touched the high of 85.58 against the greenback during the day.
The unit later turned volatile and ended the session at 85.72 against the dollar, 11 paise lower from its previous closing level.
On Monday, the rupee appreciated 37 paise to close at 85.61 against the US dollar, wiping off all its losses in 2025.
The domestic unit had added 154 paise in the last seven trading sessions.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.02 per cent at 104.24.
Brent crude, the global oil benchmark, rose 0.68 per cent to $73.50 per barrel in futures trade.
Foreign institutional investors (FIIs) purchased equities worth Rs 3,055.76 crore on a net basis on Monday, according to exchange data.