India Forex – Artifex.News

Rupee recovers seven paise from all-time low level to close at 88.28 against U.S. dollar

admin — Fri, 12 Sep 2025 10:57:00 +0000

Forex traders said the domestic unit traded in a tight range and hovered around its all-time low level. File
| Photo Credit: The Hindu

The Rupee recovered from all-time lows and settled for the day higher by seven paise at 88.28 (provisional) against the U.S. dollar on Friday (September 12, 2025), on weakness in the U.S. dollar index and positive domestic markets.

Forex traders said the domestic unit traded in a tight range and hovered around its all-time low level as tariff-led pressure on India’s exports and sustained foreign fund outflows dented investors sentiments.

India killed U.S. with tariffs, now offers ‘no tariffs’: Trump

At the interbank foreign exchange, the domestic unit opened at 88.39 and fell to an intraday low of 88.42 against the U.S. dollar during the session. The domestic unit settled for the day at 88.28 (provisional), recovering seven paise over its previous close.

On Thursday (September 11, 2025), the Rupee slumped 24 paise and closed for the day at an all-time low of 88.35 against the U.S. dollar. It had also touched the lowest-ever intraday level of 88.49 against the greenback.

“We expect the Rupee to trade with a slight positive bias on overall weakness in the U.S. dollar and rise in risk appetite in global markets on rising odds of a rate cut by Fed in its upcoming FOMC meeting next week,” said Anuj Choudhary, Research Analyst, Currency and commodities, Mirae Asset ShareKhan.

“Markets now expect a 75 bps rate cut in 2025. However, FII outflows and uncertainty over trade tariff issues between India and the U.S. may cap sharp upside,” Mr. Choudhary said, adding that traders may take cues from University of Michigan consumer sentiment data from the U.S. “The USD-INR spot price is expected to trade in a range of 88 to 88.50,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22% to 97.74. Brent crude, the global oil benchmark, was trading 0.65% higher at $66.80 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 355.97 points to settle at 81,904.70, while the Nifty climbed 108.50 points to 25,114. Foreign Institutional Investors offloaded equities worth ₹3,472.37 crore on Thursday (September 11, 2025), according to exchange data.

Meanwhile, Commerce and Industry Minister Piysuh Goyal on Thursday (September 11, 2025) said that negotiations between India and the U.S. on the proposed trade agreement, which began in March, are progressing in a positive atmosphere and both the countries are satisfied with the progress.

These remarks follow the announcement by U.S. President Donald Trump that there will be “no difficulty” for the two countries to come to a successful conclusion in trade talks and he looks forward to speaking with his “very good friend” Prime Minister Narendra Modi in the coming weeks.

Published – September 12, 2025 04:27 pm IST

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India’s Forex Reserve Touches Record High Of $681 Billion

admin — Sun, 01 Sep 2024 08:41:04 +0000

In the calendar year 2023, India added about USD 58 billion to its foreign exchange reserves.

New Delhi:

India’s foreign exchange reserves increased by USD 7.023 billion, reaching a fresh record high of USD 681.688 billion, during the week that ended on August 23, according to data released by the Reserve Bank of India.

The previous record high was USD 674.919 billion.

The reserves have been on an upward trend for some time. In 2024 alone, they have risen by approximately USD 60 billion cumulatively. This buffer of foreign exchange reserves helps insulate domestic economic activity from global shocks.

According to the latest data from the RBI, India’s foreign currency assets (FCA), the largest component of forex reserves, rose by USD 5.983 billion to USD 597.552 billion.

Gold reserves during the week increased by USD 893 million, bringing the total to USD 60.997 billion. As per estimates, India’s foreign exchange reserves are now sufficient to cover about a year of projected imports.

In the calendar year 2023, India added about USD 58 billion to its foreign exchange reserves.

In contrast, India’s forex reserves saw a cumulative decline of USD 71 billion in 2022. Forex reserves, or foreign exchange reserves (FX reserves), are assets held by a nation’s central bank or monetary authority.

These are generally held in reserve currencies, typically the US Dollar and, to a lesser extent, the Euro, Japanese Yen, and Pound Sterling.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions, aiming to contain excessive volatility in the exchange rate without reference to any pre-determined target level or band.

The RBI frequently intervenes in the market through liquidity management, including the sale of dollars, to prevent a steep depreciation of the rupee.

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India’s Forex Reserves Drop By $2.92 Billion, Now At $652.8 Billion: RBI

admin — Fri, 21 Jun 2024 17:24:37 +0000

Gold reserves decreased by USD 1.015 billion to USD 55.967 billion.

Mumbai:

India’s forex reserves dropped by USD 2.922 billion to USD 652.895 billion for the week ended June 14, the Reserve Bank said on Friday.

In the previous reporting week, the kitty had jumped by USD 4.307 billion to USD 655.817 billion, a new all-time high after consecutive weeks of increase in the reserves.

For the week ended June 14, foreign currency assets, a major component of the reserves, decreased by USD 2.097 billion to USD 574.24 billion, the data released on Friday showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves decreased by USD 1.015 billion to USD 55.967 billion during the week, the RBI said.

The Special Drawing Rights (SDRs) were down by USD 54 million to USD 18.107 billion, the apex bank said.

India’s reserve position with the IMF was up by USD 245 million to USD 4.581 billion in the reporting week, the apex bank data showed.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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