The Indian rupee depreciated by 4 paise, reaching a record low of 88.79 (provisional) against the US dollar on Tuesday, influenced by ongoing foreign capital outflows amid uncertainties in global trade.
Despite this decline, a sharp drop in global crude oil prices and a weaker dollar mitigated further losses for the rupee, according to forex traders. Market participants are also anticipating the Reserve Bank of India’s (RBI) Monetary Policy Committee decision set to be announced on Wednesday.
In interbank foreign exchange trading, the rupee started at 88.73 against the dollar, fluctuating between 88.69 and 88.80 before closing at 88.79 (provisional), which marks a decrease of 4 paise from the previous close. The rupee had settled lower by 3 paise at 88.75 against the dollar on Monday.
“Continuous pressure from Foreign Portfolio Investors (FPIs) buying dollars has weakened the rupee, with the RBI seemingly intervening to supply dollars. The rupee remains susceptible to FPIs selling, primarily due to trade pressures that began in August when the US imposed a 50 percent tariff on Indian exports,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. He predicted a trading range for the rupee on Wednesday between 88.50 and 89.00.
The RBI’s upcoming meeting occurs in the context of escalating geopolitical tensions and the recent announcement of a 50 percent tariff on Indian shipments to the US.
In related currency movements, the dollar index—reflecting the dollar’s strength against a basket of six currencies—was reported at 97.79, down by 0.11 percent. Brent crude, the global oil benchmark, traded 1.03 percent lower at $67.27 per barrel in futures markets.
On the domestic equity front, the Sensex fell by 97.32 points to close at 80,267.62, while the Nifty declined by 23.80 points to 24,611.10. Foreign Institutional Investors sold equities worth ₹2,831.59 crore on Monday, as reported by exchange data.
Additionally, the US has announced a new 100 percent tariff on branded or patented drugs entering the country from October 1, excluding pharmaceutical companies that establish manufacturing plants in the US.
Published on September 30, 2025.
