The Indian rupee experienced limited fluctuations and appreciated by 6 paise to settle at 88.20 (provisional) against the US dollar on Monday. The local currency was influenced by concerns over US trade tariffs and optimism surrounding a potential rate cut by the Federal Reserve.
Forex analysts noted that the Reserve Bank of India’s likely intervention has played a significant role in stabilizing the currency and curbing a rapid decline in its value.
During intra-day trading in the interbank forex market, the rupee opened at 88.25, hitting an intraday low of 88.30 and a peak of 88.13 against the dollar before finishing the day at 88.20 (provisional), up 6 paise from its previous close.
On the preceding Friday, the rupee had bounced back from historic lows, ending higher by 9 paise at 88.26 against the dollar.
Investors are carefully evaluating geopolitical events, and the dynamics of global trade are expected to be pivotal for the rupee’s performance moving forward.
Market focus has shifted to the US Federal Reserve’s meeting on September 17, with anticipation of a rate cut fueling uncertainty regarding the dollar’s future strength, according to forex traders.
Meanwhile, the dollar index, which measures the greenback’s performance against a basket of six currencies, decreased by 0.07 percent to 97.48.
Brent crude oil, a global benchmark, traded 0.40 percent higher at $67.26 per barrel in futures trading.
In domestic equity markets, the Sensex fell by 118.96 points to close at 81,785.74, while the Nifty dropped by 44.80 points to finish at 25,069.20.
Foreign Institutional Investors acquired equities worth ₹129.58 crore on Friday, as per exchange data.
According to data from the Reserve Bank, the country’s forex reserves surged by $4.038 billion to $698.268 billion during the week ending September 5, primarily due to a substantial increase in the value of gold reserves.
In the prior week, total reserves had increased by $3.51 billion to reach $694.23 billion.
In related news, US Commerce Secretary Howard Lutnick emphasized that New Delhi must lower its tariffs or it may encounter challenges in conducting business with the US.
Lutnick made these remarks in an interview on Saturday when discussing whether the US is jeopardizing valuable relationships with key allies such as India, Canada, and Brazil due to the tariffs imposed on these nations.
“The relationship is one-sided; they sell to us and benefit, while they restrict our access to their economy, taking advantage of our openness,” Lutnick stated.
Published on September 15, 2025
