The rupee depreciated by 16 paise to 88.01 against the US dollar in early trading on Thursday, as traders assessed the US Federal Reserve’s outlook following a rate cut.
The US Federal Reserve, as anticipated, lowered rates by a quarter point and signaled plans to gradually reduce borrowing costs for the remainder of the year.
In the interbank foreign exchange market, the rupee opened at 87.93 but subsequently lost ground, reaching an early low of 88.01 against the US dollar, marking a decline of 16 paise from its previous closing value. On Wednesday, the rupee had appreciated by 24 paise, finishing at 87.85 against the dollar.
“Expect a range-bound movement in the pair on Thursday following a significant event as we wait for the outcome of the US-India trade tariffs meeting. Thursday’s opening is slightly weaker due to a rise in the US Dollar index and a decline in Asian currencies,” remarked Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, rose by 0.17 percent to 97.03. Brent crude, the global oil benchmark, traded 0.12 percent lower at $67.87 per barrel in futures.
On the domestic equity front, the Sensex surged by 447.5 points to reach 83,141.21 in early trading, while the Nifty gained 118.7 points, rising to 25,448.95.
Foreign Institutional Investors (FIIs) sold equities worth ₹1,124.54 crore on a net basis on Wednesday, according to exchange data.
In related news, Union Commerce Minister Piyush Goyal expressed optimism about India’s exports, projecting a growth of around 6 percent this year compared to the same period in 2024. He emphasized the country’s robust performance in global trade despite ongoing challenges, adding that discussions on free trade agreements (FTAs) with several countries are advancing. “India’s exports are expected to grow by around 6 percent this year compared to the corresponding period last year. I believe we will end the year on a positive note,” Goyal stated in remarks to reporters.
Published on September 18, 2025.
