The Indian rupee gained 15 paise, reaching 88.60 against the US dollar in early trading on Thursday, following the weakening of the American currency in global markets. Forex traders noted that the rupee continues to experience pressure this week due to several compounding factors.
The decline in investor sentiment has been attributed to issues such as the increase in H-1B visa fees, tariffs imposed during the Trump administration, and ongoing foreign fund outflows. On the interbank foreign exchange market, the rupee opened at 88.65 against the dollar before rising to 88.60, marking an improvement of 15 paise from the previous trading session. On Wednesday, the rupee concluded trading down by 2 paise, recording its lowest-ever closing level at 88.75 against the dollar.
Traders indicated that uncertainties surrounding global trade and the implications of the visa fee hike on India’s IT service exports remain a concern for investors. In parallel, the dollar index, which measures the US currency’s strength against a basket of six other currencies, was reported at 97.75, down by 0.13 percent.
Brent crude oil prices also saw a decrease of 0.36 percent, priced at $69.06 per barrel in futures trading. In the domestic equity market, the Sensex dropped by 141.32 points, settling at 81,574.31, while the Nifty fell by 22.4 points to reach 25,034.50. Additionally, Foreign Institutional Investors sold equities worth ₹2,425.75 crore on Wednesday, according to exchange data.
According to Amit Pabari, Managing Director of CR Forex Advisors, “USD/INR is testing key levels, with resistance at 89.00–89.20 and support at 88.40. The rise appears influenced more by tariffs and visa fee hikes than broad dollar strength. A closing below 88.20 could indicate a potential trend reversal, while developments in trade negotiations or a weaker dollar index could aid a rupee recovery.”
In related news, Commerce and Industry Minister Piyush Goyal is currently in the US for trade discussions, accompanied by senior ministry officials, including Chief Negotiator Rajesh Agrawal. Goyal has engaged in discussions with his US counterpart as part of ongoing negotiations surrounding a proposed bilateral trade agreement following a recent round of talks in New Delhi between US Chief Negotiator Brendan Lynch and Agrawal.
Published on September 25, 2025.
