The rupee depreciated 12 paise to 87.95 against the U.S. dollar in early trade on Monday (October 27, 2025), weighed down by rising crude oil prices supported by optimism over a potential U.S.-China deal.

Forex traders said the rally in crude oil prices was driven by the potential U.S.-China trade deal, which supports expectations for a stronger global oil demand.

At the interbank foreign exchange market, the rupee opened at 87.87, and slipped to 87.95 against the greenback, registering a fall of 12 paise from its previous close.

On Friday (October 24, 2025), the rupee appreciated 5 paise to close at 87.83 against the U.S. dollar.

“For now, the rupee seems to be walking a tightrope between caution and hope. If it manages to break below 87.50, it could find room to appreciate toward 86.80–87 in the near term. On the other hand, resistance stands around 88.30–88.40,” CR Forex Advisors MD – Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.04% to 98.91.

Brent crude, the global oil benchmark, rose 0.02% to ₹65.95 per barrel in futures trading.

The US sanctions against Russia continue, with traders continuing to watch developments around trade negotiations and geopolitical events as these remain key for energy market sentiment and ongoing price trajectory, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

On the domestic equity markets front, Sensex climbed 272.7 points to 84,484.58 in early trade, while the Nifty was up 88.55 points to 25,883.70.

Foreign Institutional Investors purchased equities worth ₹621.51 crore on Friday (October 24, 2025), according to exchange data.

Meanwhile, India’s forex reserves increased by $4.496 billion to $702.28 billion during the week ended October 17, as the value of gold reserves rose further, the RBI said on Friday.

In the previous week, the overall reserves had jumped by $2.176 billion to $697.784 billion.

The rupee recovered 15 paise from its all-time low level to 88.00 against the U.S. dollar in early trade on Wednesday (September 3, 2025) as persistent foreign fund outflows and dollar strength weighed on investor sentiments.

Forex traders said the rupee is trading near an all-time low, driven by risk-averse sentiments amid India-U.S. trade deal uncertainty.

Moreover, a muted trend in domestic equities further dented investors’ sentiments.

At the interbank foreign exchange market, the rupee opened at 88.15 against the U.S. dollar, then touched 88.00, registering a gain of 15 paise from its previous close.

On Tuesday (September 2, 2025), the rupee declined 5 paise to an all-time low of 88.15 against the U.S. dollar.

The rupee opened slightly on the positive side, but dollar buying could push it back lower, said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

“With the Competitive Commission having cleared the $1.6 billion of shares bought by SMBC bank, we can soon expect the inflows to hit the market to keep rupee steady but within the range of 87.80 to 88.30 with a watch on the RBI as to whether it keeps a tab on 88.30,” Mr. Bhansali said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.48, higher by 0.09%. Brent crude, the global oil benchmark, was trading 0.27% lower at $68.95 per barrel in futures trade.

On the domestic equity market front, Sensex declined 153.28 points to 80,004.60 in early trade, while the Nifty dipped 46.4 points to 24,533.20.

Foreign Institutional Investors offloaded equities worth ₹1,159.48 crore on Tuesday (September 2, 2025), according to exchange data.