The rupee appreciated eight paise to close at 88.21 against the U.S. dollar on Wednesday (October 29, 2025). File photo for representational purposes.
| Photo Credit: The Hindu
The rupee appreciated eight paise to close at 88.21 (provisional) against the U.S. dollar on Wednesday (October 29, 2025), on strong domestic markets and optimism over the trade deal between India and the U.S.
Forex traders said upbeat market sentiment, driven by trade deal optimism and easing crude oil prices, enthused investor sentiment, even as importer demand for dollars capped sharp gains.
Moreover, investors remain cautious ahead of the U.S. FOMC meeting decision.
At the interbank foreign exchange market, the rupee opened at 88.21, and later traded in a range of 88.15 to 88.35 during the day. The local unit finally settled at 88.21 (provisional) against the greenback, registering a gain of 8 paise from its previous close.
On Tuesday (October 28, 2025), the rupee depreciated by 10 paise to close at 88.29 against the U.S. dollar.
“We expect the rupee to trade with a slight positive bias on positive domestic markets and weak crude oil prices. Upbeat market sentiments over trade deal optimism may further support the rupee,” said Anuj Choudhary, research analyst, currency and commodities, Mirae Asset ShareKhan.
U.S. President Donald Trump has said, “I’m doing a trade deal with India.” However, month-end dollar demand from importers may cap sharp gains. Investors may remain cautious ahead of the U.S. FOMC meeting decision. USDINR spot price is expected to trade in a range of 87.85 to 88.60, Mr. Choudhary added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21% to 98.87.
Brent crude, the global oil benchmark, rose 0.22% to $65.54 per barrel in futures trading.
On the domestic equity markets front, Sensex climbed 368.97 points to settle at 84,997.13, while Nifty gained 117.70 points to 26,053.90.
Foreign Institutional Investors purchased equities worth ₹10,339.80 crore on Tuesday, according to exchange data.
Meanwhile, India’s industrial production growth remained steady at 4% in September this year, driven by the manufacturing sector’s strong performance, buoyed by GST rationalisation and festive demand, according to official data released on Tuesday.
Factory output, measured by the Index of Industrial Production (IIP), expanded by 3.2% in September 2024.
Published – October 29, 2025 04:34 pm IST
