MUMBAI: The Indian rupee settled weaker on Tuesday, pressured by dollar demand spurred by the maturity of positions in the non-deliverable forwards (NDF) market and a decline in most of its regional peers.
Likely dollar-selling intervention by the Reserve Bank of India helped limit losses in the local unit, traders said.
The rupee closed at 86.95 against the US dollar, down about 0.1% on the day.
Elevated interbank dollar demand due to the maturity of positions in the NDF market weighed on the rupee alongside likely outflows from local stocks, a trader at a private bank said.
Foreign investors have net sold about $12 billion of local stocks so far in 2025, exerting pressure on the rupee.
On the day, weakness in regional peers was also a headwind. The offshore Chinese yuan fell 0.2% to 7.2808 while the dollar index rose to just shy of the 107 handle.