The rupee rose 9 paise to close at 87.93 (provisional) against the U.S. dollar on Monday (October 20, 2025), supported by foreign fund inflows and lower crude oil prices.

Positive sentiments in the domestic equity markets lent further support to the local unit, according to forex traders.

At the interbank foreign exchange, the rupee opened at 87.94 against the U.S. dollar and traded in the range of 87.74-87.94 during the day before settling at 87.93 (provisional), higher by 9 paise against its previous close.

On Friday, the rupee closed at 88.02 against the U.S. dollar.

“The Reserve Bank of India ensured that the rupee opened below 88… There was no specific development on the India-U.S. trade front, while on the U.S.-China front, the talks by government officials gave hope that U.S.-China trade developments could be solved amicably,” Anil Kumar Bhansali, Executive Director, Finrex, said.

Stock exchanges will hold a special Muhurat trading session on Tuesday from 1.45 p.m. to 2.45 p.m. for Laxmi Pujan, according to notices by the BSE and the NSE.

The forex markets, however, will be closed on Tuesday and Wednesday.

“After two days’ holidays from Tuesday, the rupee is expected to be in the range of 87.70-88.30 on Thursday,” Bhansali added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, edged up 0.1% to 98.53.

Brent crude, the global oil benchmark, fell 0.36% to $61.07 per barrel in futures trade.

On the domestic equity market front, Sensex soared 411.18 points to settle at 84,363.37, while Nifty climbed 133.30 points to 25,843.15.

Foreign Institutional Investors (FIIs) purchased equities worth ₹308.98 crore on Friday, according to exchange data.

India’s forex reserves dropped by $2.176 billion to $697.784 billion during the week ended October 10, the RBI data released on Friday showed.

The rupee depreciated 6 paise to 88.16 against the U.S. dollar in early trade on Tuesday (September 2, 2025), weighed down by persistent foreign fund outflows and dollar demand.

Forex traders said on Monday, the rupee touched a record intraday low of 88.33 against the dollar before clawing back slightly toward the close.

The sharp fall underscores the strain as India grapples with the steepest U.S. tariffs among Asian exporters — a headwind that continues to weigh on sentiment and currency stability.

At the interbank foreign exchange market, the rupee opened at 88.14 against the U.S. dollar, then fell to 88.16, registering a decline of 6 paise over its previous close.

On Monday, the rupee closed at an all-time low of 88.10 against the U.S. dollar.

“Higher tariffs are eroding India’s export competitiveness. Foreign portfolio investors aren’t waiting to see how this plays out: $2.4 billion has exited Indian equities over the past three sessions, leaving behind volatility across both currency and equity markets.

“Outflows of this scale not only strain the rupee but also cast doubts over near-term investment appetite,” CR Forex Advisors MD – Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.08% to 97.84.

Brent crude, the global oil benchmark, was trading 0.44% higher to $68.45 per barrel in futures trade.

“The rupee faces resistance near 88.50, with support around 87.50. With U.S. tariff issues unresolved, risks remain skewed to the downside. Persistent foreign outflows or dollar strength could drive further weakness, while any recovery is likely to stay limited without clear trade relief,” Pabari said.

On the domestic equity market front, Sensex climbed 207.45 points to 80,571.94 in early trade, while the Nifty advanced 60.8 points to 24,685.85.

Foreign Institutional Investors offloaded equities worth ₹1,429.71 crore on Monday, according to exchange data.

Meanwhile, U.S. President Donald Trump on Monday claimed that India has now “offered” to cut its tariffs to nothing, “but it’s getting late”, as he said that India buys most of its oil and military products from Russia and very little from the US.

“What few people understand is that we do very little business with India, but they do a tremendous amount of business with us,” Mr. Trump said in a post on Truth Social.