Mumbai
The Indian rupee strengthened by 3 paise to 88.69 against the US dollar in early trading on Monday, reflecting positive movements in Asian currencies and a weakening of the American dollar in international markets. Forex traders indicated that the rupee remains within a narrow range, influenced by ongoing capital outflows and geopolitical tensions.
The outcome of the Reserve Bank of India’s (RBI) policy meeting, scheduled for October 1, is anticipated to significantly impact the rupee and government bond prices. In the interbank foreign exchange market, the rupee opened at 88.69 against the US dollar, marking a 3 paise gain from its previous close. On Friday, the rupee had rebounded from an all-time low to finish 4 paise higher at 88.72 per dollar.
The currency reached a record low of 88.76 against the dollar on Thursday. “The RBI may intervene to maintain the rupee around the 88.80 level as analysts monitor the effects of US tariffs and external capital flows on the currency,” stated Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
Currently, the dollar index, which measures the strength of the dollar against a basket of six currencies, is trading at 97.94, down by 0.21 percent. Furthermore, Brent crude, the global oil benchmark, is down 0.58 percent at $69.72 per barrel in futures trading.
Persistent foreign fund outflows and a risk-averse sentiment have hindered a significant appreciation of the rupee, while expectations of progress regarding US tariffs have also affected investor confidence.
In the domestic equity markets, stocks rebounded in early trading, with the Sensex increasing by 255.46 points to reach 80,681.92, and the Nifty rising by 89.05 points to 24,743.75. According to exchange data, Foreign Institutional Investors sold equities worth ₹5,687.58 crore on Friday.
In a significant development, the US has imposed a 100 percent tariff on branded or patented drugs entering the country from October 1, except for pharmaceutical companies that are establishing manufacturing plants in the US. The exemption applies to ongoing construction projects, including sites that have broken ground or are in the process of development.
India’s forex reserves decreased by $396 million to $702.57 billion for the week ending September 19, according to RBI data. This follows a previous week where reserves had increased by $4.698 billion to reach $702.966 billion.
Published on September 29, 2025
