The rupee depreciated 9 paise to 88.77 against the U.S. dollar in early trade on Tuesday (October 14, 2025) weighed down by the broad strength of the American currency in the overseas market.

Forex traders said the optimism surrounding the India-U.S. trade talks was negated by foreign fund outflows amid a risk-off tone globally.

Moreover, the Reserve Bank of India is monitoring the depreciation of the USD-INR pair towards 88.80, they said.

At the interbank foreign exchange market, the rupee opened at 88.73, and slipped to 88.77 against the greenback, registering a fall of 9 paise from its previous close.

On Monday (October 13, 2025), the rupee appreciated 4 paise to close at 88.68 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07% to 99.19.

Brent crude, the global oil benchmark, rose 0.36% to $63.55 per barrel in futures trading.

“The trade tariffs are the only point which is hurting investors for now, while an Indian trade team is in the U.S. to continue and finalise the trade talks,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

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.

Mr. Bhansali further said that the rupee’s cautious appreciation and technical positioning near key levels like 88.80 and 88.50 suggest a finely balanced market.

“RBI moves and global trade developments will be crucial in USD-INR direction,” Mr. Bhansali said.

Meanwhile, Domestic equity markets witnessed a rebound in early trade with the Sensex climbing 246.32 points to 82,573.37, while Nifty rose 83 points to 25,310.35.

Foreign Institutional Investors sold equities worth ₹240.10 crore on Monday (October 13, 2025), according to exchange data.

U.S. President Donald Trump on Tuesday (September 16, 2025) dialled Prime Minister Narendra Modi and greeted him on his 75^th birthday, in a significant gesture seen as part of Washington’s efforts to reset ties with New Delhi.

In a social media post, PM Modi said, like Mr. Trump, he is also “fully” committed to taking the India-U.S. Comprehensive and Global Partnership to “new heights”.

“Thank you, my friend, President Trump, for your phone call and warm greetings on my 75th birthday,” the Prime Minister said.

“Like you, I am also fully committed to taking the India-U.S. Comprehensive and Global Partnership to new heights,” he said.

“We support your initiatives towards a peaceful resolution of the Ukraine conflict,” he added. Mr. Trump’s call to wish PM Modi on his birthday came a day before the Prime Minister’s 75th birthday.

As a “continuation” of trade talks between India and the U.S., India will host the U.S. chief negotiator Brendan Lynch for a one-day meeting with India’s chief negotiator Rajesh Agrawal, Mr. Agrawal said on Monday (September 15, 2025).

This follows developments earlier this month, when U.S. President Donald Trump spoke about the “special relationship” the U.S. shares with India, and Prime Minister Narendra Modi “fully reciprocates” the sentiment.

Also Read | Trump, Modi indicate India-U.S. trade talks may resume

These friendly overtures came at a time when the U.S. has imposed a total tariff of 50% on imports from India, which derailed the negotiations on a Bilateral Trade Agreement between the two countries. The latest round of negotiations was to take place during the last week of August, but was indefinitely postponed following the levy of the two-part tariffs on India.

“The chief negotiator of the U.S. is visiting India tonight (September 15) and tomorrow we will be holding talks through the day,” Mr. Agrawal, who leads the negotiations with the U.S. on India’s behalf, said at a press briefing.

Also Read | India ‘fully engaged’ with U.S. on trade deal, says Commerce Secretary

“This is not an official ‘round’ of negotiations but it will definitely be a discussion on the trade talks and on trying to see how we can reach an agreement between India and the U.S.”

Mr. Agrawal said that India and the U.S. have been engaged in discussions at various levels — ranging from the team of negotiators to even at the Ministerial level — and so Tuesday’s (September 16, 2025) meeting should be seen as a “continuation” of the talks.

EDITORIAL | ​Doublespeak: On the Trump administration’s actions and India 

U.S. Ambassador-designate to India Sergio Gor, during his Senate hearing last week, said that Mr. Trump had invited India’s Trade Minister to the U.S.

“We have also noted that, as part of his Senate hearing, he mentioned that the Indian trade minister has been invited,” Mr. Agrawal said. “Tomorrow we will have discussions on it.”

Commerce and Industry Minister Piyush Goyal on Wednesday (September 10, 2025) said that India is in ‘active dialogue’ with the United States for a free trade agreement.

The Minister said that negotiations are going on with the European Union as well in the national capital for concluding a trade agreement.

Besides, he added, India is also in talks with New Zealand for a trade pact.

“We are in active dialogue with the USA and New Zealand for a trade agreement,” Mr. Goyal said at an event of industry body FICCI.

Also read: Time to make the hard choices needed to conclude trade deal: U.S.-India Business Council

The Minister said that India has already concluded trade pacts with Mauritius, the UAE and Australia.

Also, the Minister said, “We will soon finalise second tranche of trade agreement with Australia”.