The Indian rupee gained 88 paise to reach 87.93 against the US dollar in early trade on Wednesday, recovering from its all-time closing low, buoyed by a weakening dollar index following indications of potential rate cuts by the US Federal Reserve this year.
Forex traders noted that the decline in crude oil prices and reports of the Reserve Bank of India’s (RBI) intervention were supportive of the domestic currency’s recovery. In the interbank foreign exchange market, the rupee opened at 88.74 against the dollar, then steadily appreciated to 87.93, reflecting an 88 paise gain from the previous session’s close. It was subsequently trading at 88.33.
On Tuesday, the rupee had depreciated by 13 paise, closing at a record low of 88.81 against the greenback. Federal Reserve Chair Jerome Powell, in remarks made on Tuesday, suggested further rate cuts in light of rising unemployment. He also expressed concerns over persistent inflation and warned of risks associated with tariffs and restrictive immigration policies, as noted by 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, was down 0.20 percent at 98.85. The index had dropped to 99.03, a decline of approximately 0.24 percent from the previous session, due to concerns over US-China trade tensions and the ongoing US government shutdown, which has affected market sentiment despite elevated global economic uncertainties.
Brent crude, the global oil benchmark, traded 0.43 percent lower at $62.12 per barrel in futures as the US shutdown entered its third week with no signs of resolution.
On the domestic equity front, the Sensex surged by 354.57 points to 82,384.55 in early trading, while the Nifty rose by 109.55 points to reach 25,255.05. In a separate report, Foreign Institutional Investors were documented as having sold equities worth ₹1,508.53 crore on Tuesday.
Published on October 15, 2025.
