Indian rupee appreciated against the US dollar on Tuesday on the back of a weaker greenback. Traders took support as Commerce and Industry Minister Piyush Goyal has said that India’s trade negotiations for a bilateral trade agreement (BTA) with the United States (US) are reached at advanced stage. Traders overlooked the report that output of eight key infrastructure sectors grew at a slower pace of 1.8 per cent in November 2025 as compared to 5.8 per cent in the same month last year, amid a dip in production of crude oil, natural gas, refinery products, and electricity. On the global front, Japanese yen strengthened against other major currencies in the Asian session on Tuesday, as investors talked about the Bank of Japan's latest 25 basis point rise and the likelihood of further rate hikes.

Finally, the rupee ended at 89.63 (Provisional), appreciated by 05 paise from its previous close of 89.68 on Monday. The currency touched a high and low of 89.85 and 89.58 respectively.