Rupee depreciates 23 paise to 85.63 against U.S. dollar in early trade

Rupee falls to 85.63 against the dollar due to strengthening American currency and rising crude oil prices.

The rupee fell 23 paise to 85.63 against the U.S. dollar in early trade on Wednesday (May 28, 2025), dragged down by strengthening American currency and an uptrend in crude oil prices.

The local unit also remained under pressure due to increased dollar demand at the end of the month from exporters and banks, even though foreign fund inflow stayed muted amid mixed sentiment in domestic equity markets, forex analysts said.

Also, investors moved cautiously, awaiting cues from domestic as well as global macroeconomic data.

At the interbank foreign exchange, the domestic unit opened at 85.59 and fell further to 85.71 before trading again at 85.63 against the greenback, registering a fall of 23 paise from its previous close.

On Tuesday (May 27, 2025), the rupee closed 30 paise lower at 85.40 against the greenback.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.30% at 99.72.

Analysts attributed the greenback’s strength to improving U.S. consumer confidence and a weakening yen amid a sharp fall in Japanese long-term bond yields.