Indian rupee appreciated against the US dollar on Tuesday as crude oil prices retreated from their elevated levels. Traders took note of report that Reserve Bank of India (RBI) is planning to conduct a USD/INR buy-sell swap auction of $5 billion (about Rs 45,000 crore) for a tenor of thirty-six months on December 16, 2025 to inject liquidity. The swap is in the nature of a simple buy/sell foreign exchange swap from the Reserve Bank side. A bank will sell US dollars to the Reserve Bank and simultaneously agree to buy the same amount of US dollars at the end of the swap period. On the global front, Australian dollar strengthened against other major currencies in the Asian session on Tuesday, after the Reserve Bank of Australia or the RBA maintained rates on hold and markets anticipated the U.S. Federal Reserve's policy meeting later this week.

Finally, the rupee ended at 89.87 (Provisional), appreciated by 18 paise from its previous close of 90.05 on Monday. The currency touched a high and low of 90.15 and 89.84 respectively.