Rupee Snaps Eight-Day Winning Streak Against US Dollar

The Indian rupee snapped an eight-day winning streak against the greenback on Tuesday as both the US dollar index and crude oil prices rose. The domestic unit closed 12 paise lower at 85.76 against the dollar.

On Monday, the rupee had ended at over two-month high of 85.64 against its American counterpart. The local currency also posted the best winning streak since Jan 15, 2024.

The dollar index's rise on Tuesday was supported by strong US purchasing managers' index data, which pushed up US yields, said Ritesh Bhansali, director of Mecklai Financial Services Pvt. The index rose for fifth consecutive session and hit an intraday high of 104.47. It was trading flat at 104.27 as of 3:28 p.m.

Crude oil prices extended gains through Asia session to Europe trade hours as demand worries weighed on investors. US President Donald Trump said that he will impose 25% tariff on countries who are importing oil from Venezuela.

The May future contract of brent crude on intercontinental exchange was trading 0.68% higher at $73.50 a barrel as of 3:28 p.m.

Notably, the Indian rupee had opened six paise stronger at 85.58 against the US dollar. However, it pared the gains and settled lower by the end of the trading session.

"The rupee is expected to be in the range of 85.40 to 85.90. Exporters are advised to take hedges above 85.80 levels and importers are advised to take hedges below 85.50," Bhansali said.