The rupee depreciated by 18 paise to 88.66 against the U.S. dollar on Thursday (November 20, 2025), as the U.S. dollar’s recovery capped the domestic unit’s upside.

Forex traders said the dollar has staged a rally, moving above the 100 level, after the U.S. Federal Reserve minutes indicated that most officials were opposed to a rate cut in December, following the October cut.

At the interbank foreign exchange market, the rupee opened at 88.63, then lost ground and touched a low of 88.66 against the U.S. dollar, registering a decline of 18 paise over its previous close.

On Wednesday, the rupee appreciated 12 paise to close at 88.48 against the U.S. dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.03% to 100.25.

Brent crude, the global oil benchmark, was trading 0.28% higher at $63.69 per barrel in futures trade.

“Rupee is facing resistance around 88.80-89.00 and finding initial support near 88.40. The momentum is gradually shifting in favour of the rupee,” CR Forex Advisors MD Amit Pabari said.

Positive cues from US-India trade developments, lower crude costs, and gains in domestic equities are gradually strengthening sentiment. A sustainable break below 88.40 could open the way toward 88.00–87.70, indicating further rupee strength, Mr. Pabari added.

“Progress on the first phase of the India-U.S. trade deal now looks a little less like a distant dream and a little more like a near-term possibility,” he noted.

Commerce and Industry Minister Piyush Goyal on Tuesday said “you will hear good news” on the proposed trade pact between India and the U.S. once the deal is fair, equitable and balanced.

The remarks came days after President Donald Trump stated that the U.S. is “pretty close” to reaching a “fair trade deal” with India, and added that he will lower tariffs imposed on Indian goods at “some point”.

On the domestic equity market front, the Sensex climbed 284.49 points to 85,470.96 in early trade, while the Nifty was up 83.35 points to 26,136.

Foreign Institutional Investors bought equities worth ₹1,580.72 crore on a net basis on Wednesday, according to exchange data.