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Indian rupee depreciates on Tuesday amid weak trend in domestic markets

20 May 2025 Evaluate

Indian rupee depreciated against the US dollar on Tuesday amid weak trend in domestic markets and a bounce back in US treasury yields. Investors were cautious as the provisional data from the National Stock Exchange showed foreign portfolio investors turned net sellers on Monday, offloading equities worth Rs 526 crore. Traders took note of ICRA’s report stating that it projected India's GDP growth at 6.9 per cent in the quarter ended March 31, 2025 (Q4) and at 6.3 per cent for the full 2024-25 fiscal, undershooting the National Statistics Office (NSO) estimates made in February. In February, the NSO had projected the Indian economy to grow at 6.5 per cent in 2024-25. On the global front, U.S. dollar weakened against other major currencies in the European session on Tuesday, due to fiscal and economic concerns amid uncertainties about U.S. tariffs.

Finally, the rupee ended at 85.60 (Provisional), depreciated by 18 paise from its previous close of 85.42 on Monday. The currency touched a high and low of 85.65 and 85.39 respectively.

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