Rupee gains 12 paise to close at 96.24 against US dollar

MUMBAI: Rupee pared initial losses and settled for the day higher by 12 paise at 96.24 (provisional) against the US dollar on Tuesday, as traders assessed the strong inflows related to the Reserve Bank's initiatives to support foreign exchange liquidity amid global market uncertainties.

Forex traders said India attracted USD 20.72 billion in forex inflows under the swap facility since June, providing significant structural support to the country's balance of payments position.

At the interbank foreign exchange, the rupee opened at 96.41 against the US dollar and traded in the range of 96.13 to 96.42 during the day. The domestic unit finally settled for the day at 96.24 (provisional), higher by 12 paise from its previous close.

On Monday, the rupee fell 6 paise to 96.36 against the US dollar.

The Reserve Bank on Monday said its concessional swap facility, introduced to encourage foreign currency inflows, has attracted USD 20.72 billion till July 17. The swap facility has seen avid interest and attracted steady forex inflows since June 8, 2026.

A strong mobilisation was witnessed through Foreign Currency Non-Resident (Bank) or FCNR (B) deposits.

Of the total inflows, FCNR (B) deposits accounted for USD 17.406 billion, while Overseas Foreign Currency Borrowings (OFCBs) contributed USD 1.97 billion and External Commercial Borrowings (ECBs) amounted to USD 1.342 billion, the central bank said in a statement on Monday.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.03 per cent at 100.91.

Brent crude, the global oil benchmark, was trading 0.25 per cent higher at USD 89.44 per barrel in futures trade.

The USD/INR pair continue to remain under pressure as the dollar index has touched 100.91 while oil prices were well bid at USD 89.44 per barrel, traders said, adding that the US-Iran conflict and the Houthi-Saudi blockade could again risk the Middle East oil supplies.

On the domestic equity market front, Sensex declined 238.41 points to settle at 77,470.11, while the Nifty dipped 50.80 points to 24,187.70.

Foreign Institutional Investors offloaded equities worth Rs 1,121.04 crore on a net basis on Monday, according to exchange data.