The Indian rupee experienced a significant recovery on Wednesday, rising by 75 paise to close at 88.06 (provisional) against the US dollar, marking its most substantial intraday gain in nearly four months. This rebound is attributed to potential intervention by the Reserve Bank of India (RBI) and a rally in domestic markets.
Forex traders indicated that domestic markets surged nearly 0.70 percent on the optimism surrounding trade discussions between India and the US, which influenced the USD/INR exchange rate. Furthermore, a decline in the US dollar’s strength and a drop in crude oil prices provided additional support for the rupee.
During trading on the interbank foreign exchange, the rupee commenced at 88.74 against the dollar, briefly dipping below 88 before climbing to a session high of 87.93 per dollar. Ultimately, the domestic currency settled at 88.06, reflecting a gain of 75 paise from its previous close.
On Tuesday, the rupee had depreciated by 13 paise, closing at a record low of 88.81 against the US dollar. Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, noted that the rupee is expected to maintain a positive bias due to the overall weakness of the US dollar and a strengthening domestic market. He also highlighted that the ongoing decline in global crude oil prices and new foreign investments might bolster the rupee’s position, suggesting a trading range for USD/INR between 87.70 to 88.40.
As for currency performance, the dollar index, which measures the greenback’s strength against a basket of six major currencies, was down by 0.22 percent at 98.82. Meanwhile, Brent crude, the international oil benchmark, was trading 0.19 percent lower at $62.27 per barrel in futures.
On the domestic equities front, the Sensex rose 575.45 points to close at 82,605.43, while the Nifty gained 178.05 points to reach 25,323.55. However, data indicated that Foreign Institutional Investors sold equities worth ₹1,508.53 crore on Tuesday.
In economic updates, India’s exports increased by 6.74 percent to reach $36.38 billion in September, despite facing global challenges, while imports surged by 16.6 percent to $68.53 billion. The trade deficit for the month was reported at $32.1 billion, according to data from the commerce ministry.
Published on October 15, 2025
