The rupee dropped 7 paise to settle at 89.43 (provisional) against the U.S. dollar on Friday (November 28, 2025), tracking a strong greenback and a rise in crude oil prices in the international market.

“The Indian currency was also weighed down by subdued equity market sentiment and the withdrawal of foreign funds, even as investors keenly awaited the release of domestic macroeconomic data later in the day,” forex traders said.

At the interbank foreign exchange market, the rupee opened at 89.41 and touched intra-day low of 89.49 against the dollar. It finally settled at 89.43 (provisional) against the U.S. dollar, registering a loss of 7 paise from the previous close.

The rupee depreciated 14 paise to settle at 89.36 against the U.S. dollar on Thursday.

“Indian rupee traded on a negative bias amid a recovery in the US dollar index and mixed-to-weak domestic markets,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan. Foreign Institutional Investors (FIIs) outflows and overnight gains in crude oil prices also pressured the rupee.

“We expect the rupee to trade with a slight positive bias on rising odds of a rate cut by the Fed in December and easing geopolitical tensions,” Choudhary said. “USD-INR spot price is expected to trade in a range of 89.25 to 89.70,” he added.

The finance ministry, in a monthly economic review for October released on Thursday, said the rupee’s 3.5% loss against the greenback from the end of March to the end of October this year was consistent with broader emerging-market currency trends.

“Looking at the longer trend, the rupee depreciated by 3.5% against the U.S. dollar from the end of March to the end of October 2025, demonstrating a gradual weakening consistent with broader emerging-market currency trends,” the report said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was 0.18% higher at 99.69.

Analysts attributed the strength in the greenback to increased demand from importers and banks for month-end trade payment settlements.

Brent crude, the global oil benchmark, rose 0.27% to $63.51 per barrel in futures trade.

On the domestic equity market front, the Sensex dipped marginally by 13.71 points to settle at 85,706.67, while Nifty slipped 12.60 points to 26,202.95.

FIIs sold equities worth ₹1,255.20 crore on a net basis on Thursday, according to exchange data.

The rupee pared its initial gains and settled for the day 1 paisa higher at 86.40 (provisional) against the U.S. dollar on Thursday (July 24, 2025), as risk aversion in global markets and an overnight recovery in crude oil prices dented investors’ sentiments.

Forex traders said uncertainty over the India-U.S. trade deal has been an overhang for the forex market, leaving the rupee trading in a tight range. Moreover, a negative trend in domestic equities and foreign fund outflows weighed on investors’ sentiments and restricted the upmove of the local unit.

At the interbank foreign exchange, the domestic unit opened at 86.33 against the greenback and touched an intra-day high of 86.24 and a low of 86.42.

At the end of Thursday’s trading session, the local unit settled at 86.40 (provisional), higher by 1 paisa over its previous closing price.

On Wednesday, the rupee settled with a loss of 3 paise at 86.41 against the dollar.

“We expect the rupee to trade with a slight negative bias amid geopolitical tensions between Thailand and Cambodia and positive crude oil prices. FII outflows may also weigh on the rupee,” Anuj Choudhary – Research Analyst at Mirae Asset Sharekhan said.

“Optimism over U.S.-EU trade deal and weak U.S. Dollar may support the rupee at lower levels. Traders may take cues from new home sales data from the U.S. and remain cautious ahead of PMI and durable goods orders data from the U.S. this week. Investors may also take cues from ECB’s monetary policy decision. USDINR spot price is expected to trade in a range of 86.10 to 86.75,” Mr. Choudhary said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.16% to 97.36, as investors watched out for an India-U.S. trade deal ahead of the August 1 deadline.

If the discussions fail or get delayed, Indian exporters could face fresh pressure — adding to the rupee’s challenges.

However, if a deal is reached, it could offer a much-needed breather. Until then, the uncertainty is likely to keep market participants cautious.

Brent crude, the global oil benchmark, went up by 1.18% to $69.32 per barrel in futures trade.

The U.S. team will visit India in August for the next round of negotiations for the proposed bilateral trade agreement between the two countries.

India and the U.S. teams concluded the fifth round of talks for the agreement last week in Washington.

Meanwhile, in the domestic equity market, Sensex fell 542.47 points, or 0.66%, to settle at 82,184.17, while Nifty declined 157.80 points, or 0.63%, to close at 25,062.10.

Foreign institutional investors (FIIs) offloaded equities worth ₹4,209.11 crore on a net basis on Wednesday, according to exchange data.