The Indian rupee experienced range-bound trading during the morning session on Monday, depreciating by 4 paise to 88.30 against the US dollar, primarily due to tariff-related pressures on India’s exports impacting investor sentiment.
Forex traders noted that the rupee’s movements remained constrained as it grappled with concerns over US trade tariffs, ongoing foreign portfolio outflows, and anticipation of a potential US rate cut.
In the interbank foreign exchange market, the rupee opened at 88.25, before slipping and reaching a low of 88.30 against the US dollar, marking a decline of 4 paise from the previous closing.
On Friday, the Indian rupee had reclaimed from its all-time lows and closed stronger by 9 paise at 88.26 against the US dollar.
“The rupee has been under continuous pressure, but recent interventions by the RBI have helped manage volatility and prevent rapid depreciation. The RBI is estimated to have sold around $5-6 billion recently to support the rupee. These measures aim to mitigate international trade tensions and sustain market confidence,” stated Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Bhansali also highlighted that market focus has now shifted to the Federal Reserve’s upcoming meeting on September 17, with the potential for a rate cut leading to uncertainty regarding the dollar’s future strength.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, rose by 0.07 percent to 97.61.
Brent crude, the global oil benchmark, was trading 0.58 percent higher at $67.38 per barrel in futures trading.
On the domestic equity market front, the Sensex increased by 93.81 points to 81,998.51 in early trade, while the Nifty gained 24.45 points to reach 25,138.45.
Foreign Institutional Investors bought equities worth ₹129.58 crore on Friday, according to data from the exchange.
Reserve Bank data indicated that the country’s foreign exchange reserves surged by $4.038 billion to $698.268 billion during the week ended September 5, supported by a significant increase in the value of gold reserves.
In the prior week, overall reserves had also risen by $3.51 billion to $694.23 billion.
Meanwhile, US Commerce Secretary Howard Lutnick stated that New Delhi needs to reduce its tariffs or risk facing a “tough time” in its business dealings with the US.
Lutnick made these remarks during an interview on Saturday when questioned about whether the US is mismanaging its relationships with key allies like India, Canada, and Brazil due to the tariffs imposed on these countries.
“The relationship is one-sided; they sell to us while blocking access to their economy. They profit from us, and we are wide open for them,” Lutnick remarked.
Published on September 15, 2025
