The rupee rebounded from its all-time low, closing 4 paise higher at 88.72 (provisional) against the US dollar on Friday. This movement followed the trend of a weakening dollar against key global currencies and a decline in international crude oil prices.
Forex traders noted that ongoing capital outflows and a risk-off sentiment in the domestic equity markets tempered a more significant rise in the rupee. However, optimism regarding a breakthrough in trade talks between India and the US helped bolster the domestic currency.
In the interbank foreign exchange market, the rupee opened at 88.72, fluctuating between 88.67 and 88.73 before settling at 88.72 (provisional), representing a 4 paise increase from its previous closing value. On Thursday, the rupee had fallen by 1 paisa to a fresh lifetime low of 88.76 against the dollar.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, indicated that the Reserve Bank of India made substantial interventions in the morning, allowing the rupee to open at 88.68. He attributed the currency’s decline to tariffs imposed by the Trump administration, including 100% tariffs on pharmaceuticals, furniture, and trucks.
Looking ahead, Bhansali projected that the rupee would likely fluctuate between 88.50 and 89.00 on Monday. Meanwhile, the Indian government and the US have committed to continuing discussions towards the completion of a mutually beneficial trade agreement, as stated by the Commerce Ministry. Commerce and Industry Minister Piyush Goyal led a delegation for three days of trade negotiations in the US earlier this week.
In related developments, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading 0.19% lower at 98.37. Brent crude, the global oil benchmark, showed a slight increase of 0.39% to $69.15 per barrel in futures trading.
On the domestic equity front, the Sensex fell by 733.22 points to close at 80,426.46, while the Nifty declined by 236.15 points, settling at 24,654.70. Foreign Institutional Investors were reported to have sold equities worth ₹4,995.42 crore on Thursday, according to exchange data.
Published on September 26, 2025
