The Indian rupee remained under pressure on Tuesday, as dollar demand from importers and weakness in foreign portfolio flows continued to drag it towards the 87 to the U.S. dollar mark, its weakest level since March.

The rupee depreciated 12 paise to close at 86.82 (provisional) against the U.S. dollar on Tuesday (July 29, 2025), weighed down by a jump in the U.S. dollar index and a surge in crude oil prices. Forex traders said month-end dollar demand from Oil Marketing Companies (OMCs) and importers further pressurised the rupee.

The Indian rupee has hit a four-month low, reaching 86.8725 against the US dollar . The fall was largely fueled by a weaker Euro and strong demand for dollars from state-run banks. A weaker rupee could make imported goods more expensive, potentially raising the daily living costs for consumers in the country.