Rupee Opens Flat, But Pressures Mount As FII Selloff Remains Unabated

The Indian rupee opened flat on Tuesday amid increasing global trade tensions and continued exiting by foreign institutional investors.

The domestic currency opened flat at 87.36 against the US dollar, according to Bloomberg. The currency closed at 87.36 against the greenback on Monday.

President Donald Trump said he would go ahead with new tariffs on Canada and Mexico starting Tuesday, while hiking the tariff on China to 20%. “No room left for Mexico or for Canada,” Trump told reporters Monday. “They're all set. They go into effect tomorrow.”

The rupee appreciated over 20 paise in the last session, driven by a weakening US dollar and declining US 10-year bond yields, Amit Pabari, managing director of CR Forex Advisors, said. Crude oil prices traded near the lowest in almost three months as OPEC+ signalled plans to revive halted production.

The Brent crude was down 0.56% at $71.22 a barrel as of 9:20 a.m. IST, and the West Texas Intermediate was down 0.22% at $68.22.

Despite these favourable global factors, the rupee remains under pressure due to persistent FII selling and a prevailing liquidity deficit, Pabari said. In 2025 so far, global funds have net sold equities worth Rs 1.24 lakh crore, NSDL data showed.

The currency is expected to trade in a range between 87.20-87.80, Pabari noted. "With 87.20 acting as a strong support, while 87.80 will act as a strong resistance."

With Nifty falling on a daily basis as FPIs continue to remain sellers, Rupee is getting sold off with dollar, amid demand on account of risk aversion, said Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP. "Today's range is expected between 87.20-60, with a sell near of 87.50, as stocks fall."

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