Indian rupee depreciated against the US dollar on Tuesday weighed down by a jump in the U.S. dollar index and a surge in crude oil prices. Investors remained on the sidelines ahead of the U.S. Federal Reserve’s monetary policy decision this week.  Sentiments were downbeat as government data showed that India's industrial production growth slowed to a 10-month low of 1.5 per cent in June 2025 due to poor performance of mining and power sectors, which were impacted by excess rains especially in second half of the month. On the global front, U.S. dollar strengthened against other major currencies in the European session on Tuesday, as traders awaited the outcome of ongoing U.S.-China talks in Stockholm, key U.S. economic indicators and upcoming Fed and BoJ rate decisions.

Finally, the rupee ended at 86.83 (Provisional), depreciated by 13 paise from its previous close of 86.70 on Monday. The currency touched a high and low of 86.92 and 86.76 respectively.