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Indian rupee depreciates on Tuesday amid foreign fund outflows

23 Sep 2025 Evaluate

Indian rupee depreciated against the US dollar on Tuesday amid foreign fund outflows. Foreign investors offloaded shares worth Rs 2,910 crore on a net basis on September 22. Sentiments were weak after the HSBC Flash India Composite Output Index, which measures the combined performance of India’s manufacturing and service sectors, fell to 61.9 in September from 63.2 in August. Traders overlooked Ministry of Commerce & Industry's latest data showing that the output of eight key infrastructure sectors jumped to a 13-month high of 6.3 per cent in August 2025 on account of expansion in coal, steel, and cement production. On the global front, ringgit closed lower against the US dollar on Tuesday due to profit-taking, as traders and investors opted to lock in recent gains. 

Finally, the rupee ended at 88.73 (Provisional), depreciated by 44 paise from its previous close of 88.29 on Monday. The currency touched a high and low of 88.82 and 88.41 respectively.

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