Rupee rises 6 paise to close at 87.63 against U.S. dollar

The rupee rose by 6 paise to close at 87.63 (provisional) against the U.S. dollar on Thursday (August 28, 2025), aided by a weaker greenback and a decline in crude oil prices.

However, concerns over additional U.S. tariffs on Indian products, which kicked in on Wednesday (August 27, 2025), and a decline in domestic equity markets capped gains in the local unit, according to forex traders.

The U.S. Government has imposed a total of 50% tariffs on Indian exports to America, barring a few sectors.

At the interbank foreign exchange, the rupee opened at 87.56 against the greenback and traded in the range of 87.53-87.68 during the day. The local unit settled at 87.63 (provisional), registering a gain of 6 paise from its previous close.

The rupee depreciated 13 paise to close at 87.69 against the U.S. dollar on Tuesday (August 26, 2025). Equity and forex markets remained closed on Wednesday (August 27, 2025) on account of Ganesh Chaturthi.

Brent crude, the global oil benchmark, was trading 0.72% lower at $67.56 per barrel in futures trade.

“Brent oil prices fell in Asian trading on Thursday (August 27, 2025) after U.S. data showed a lower-than-expected drop in crude inventories, while investors weighed the impact of additional U.S. tariffs against India,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.16% to 98.07.

“The dollar index fell as U.S. President Donald Trump’s unprecedented move to fire FED Governor Lisa Cook renewed concerns over the Central Bank’s independence,” Mr. Bhansali added.

On the domestic equity market front, the Sensex tumbled 705.97 points to settle at 80,080.57, while the Nifty was down 211.15 points to 24,500.90.

Foreign Institutional Investors offloaded equities worth ₹6,516.49 crore on Tuesday (August 26, 2025), according to exchange data.