The rupee weakened by 13 paise to 85.55 against the US dollar on Tuesday, weighed down by a subdued trend in domestic equities and continued foreign fund outflows.
According to forex traders, the recent rise in the US 10-year bond yield signals growing concerns over fiscal and monetary policies, pushing up borrowing costs and contributing to a decline in the Dollar Index.
Additionally, US Treasury Secretary Scott Bessent’s recent warning of possible sharp tariff hikes on key US trading partners has added to market uncertainty, they noted.