Indian rupee depreciated against the US dollar on Tuesday largely owing to continued short-covering from speculators and sustained importer demand for the American currency. Persistent foreign fund outflows also dampened traders’ sentiments. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,171.31 crore on Monday, according to exchange data. Traders were worried as India’s industrial output growth, measured in terms of the Index of Industrial Production (IIP), grew 0.4 per cent (Year-on-Year) in October 2025. The slow growth in the month could be attributed to less number of working days because of a number of festivals in the month including Dussehra, Dipawali and Chhath. On the global front, British pound weakened against other major currencies in the European session on Tuesday, as the U.K. Prime Minister Keir Starmer reiterates the need to reduce inflation and interest rates down to support business investment and economic growth.

Finally, the rupee ended at 89.97 (Provisional), depreciated by 44 paise from its previous close of 89.53 on Monday. The currency touched a high and low of 90.00 and 89.70 respectively.