The Indian rupee appreciated by 9 paise, closing at 87.93 (provisional) against the US dollar on Monday, bolstered by foreign fund inflows and declining crude oil prices. Positive sentiment in the domestic equity markets further supported the local currency, as noted by forex traders.
At the interbank foreign exchange, the rupee opened at 87.94 against the US dollar, fluctuating within a range of 87.74-87.94 before settling at the specified rate. The previous closing value was 88.02 on Friday.
Anil Kumar Bhansali, Executive Director at Finrex, commented, “The Reserve Bank of India ensured that the rupee opened below 88. There was no specific development on the India-US trade front; however, discussions among US and Chinese officials raised hopes for amicable resolutions regarding trade issues.”
In related market activity, stock exchanges plan a special Muhurat trading session on Tuesday from 1:45 PM to 2:45 PM for Laxmi Pujan, as announced by the BSE and the NSE. The forex markets will be closed on both Tuesday and Wednesday.
Bhansali projected that after the two-day holiday, the rupee is likely to trade in a range of 87.70-88.30 on Thursday. Meanwhile, the dollar index, which measures the US dollar’s strength against a basket of six currencies, rose by 0.1% to 98.53. Brent crude, the global oil benchmark, decreased by 0.36% to $61.07 per barrel in futures trading.
On the domestic equity front, the Sensex surged by 411.18 points to close at 84,363.37, while the Nifty index gained 133.30 points, reaching 25,843.15. Foreign Institutional Investors (FIIs) purchased equities valued at ₹308.98 crore on Friday, according to exchange data.
Lastly, India’s foreign exchange reserves fell by $2.176 billion to $697.784 billion for the week ended October 10, as per data released by the Reserve Bank of India on Friday.
Published on October 20, 2025.
