Rupee falls 12 paise to revisit all-time low of 88.80 against US dollar

The rupee depreciated 12 paise to revisit its all-time low of 88.80 (provisional) against the U.S. dollar on Tuesday (October 14, 2025), weighed down by negative domestic equities and overnight gains in the American currency.

Forex traders said foreign fund outflows amid a risk-off mode globally further dented investor sentiment.

However, a decline in crude oil prices and reports of RBI intervention supported the local unit and restricted the slide.

At the interbank foreign exchange, the rupee opened at 88.73 against the greenback and fell to an intraday low of 88.81 and a high of 88.73. It finally closed the day at 88.80 against the greenback, registering a decline of 12 paise over its previous close of 88.68.

On September 30, the rupee had fallen to an all-time low of 88.80 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.10% higher at 99.36.

Brent crude, the global oil benchmark, was trading lower by 2.15% at $61.99 per barrel in futures trade.

According to some experts, U.S.-India trade tariffs are the only point which is hurting investors’ sentiments.

A team of senior officials from India will visit the U.S. this week for trade talks, and negotiations on the proposed bilateral trade agreement are progressing well, a top official said on Monday (October 13, 2025).

In February this year, leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement (BTA).

It was planned to conclude the first tranche of the pact by the fall (October-November) of 2025.

So far, five rounds of negotiations have been completed.

“A weak tone in global crude oil prices and FII inflows may favour the rupee. The U.S. government shutdown and rising odds of a rate cut by the U.S. Federal Reserve may further weigh on the U.S. Dollar. USD/INR spot price is expected to trade in a range of 88.50 to 89,” said Anuj Choudhary, research analyst, currency and commodities, Mirae Asset ShareKhan.

On the domestic macroeconomic data front, India’s CPI inflation cooled off to an 8-year low at 1.54% in September against 2.07% in August. It fell below the RBI inflation target of 2%.

WPI inflation too cooled off to 0.13% in September compared to 0.52% in August.

On the domestic equity market front, Sensex dropped 297.07 points to close at 82,029.98, while the Nifty declined 81.85 points to 25,145.50.

Foreign Institutional Investors sold equities worth ₹240.10 crore on Monday, according to exchange data.