The Indian rupee fell to 85.6575 against the dollar due to importer demand, a stronger greenback after positive US consumer confidence data, and anticipation of portfolio outflows from a major block deal involving ITC. Bond yields also eased.

• The rupee weakened 0.3% to 85.6575 against the USD.
• ITC block trade ($1.4B) fuels speculative pressure.
• Bond yields fall on rate cut expectations.