The Indian rupee appreciated by 14 paise to reach a one-month high of 87.88 against the US dollar in early trading on Monday, propelled by foreign fund inflows and declining crude oil prices. The sentiment towards the rupee was further strengthened by notable gains in the domestic stock market.
At the interbank foreign exchange market, the rupee opened at 87.94 and fluctuated within a narrow range amid limited trading activity. It recorded a low of 87.95 and a high of 87.88 during the early session. The local unit later stabilized at 87.88 against the dollar, reflecting a 14 paise increase from the previous close of 88.02.
Both stock and money markets were operational on Monday, with the exchanges scheduled to conduct a special Muhurat trading session on Tuesday from 1:45 PM to 2:45 PM to mark Laxmi Pujan, as indicated in notices from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, edged up by 0.02 percent to 98.45. Brent crude, considered the global oil benchmark, fell by 0.31 percent to $61.10 per barrel in futures trading.
In the domestic equity market, the Sensex increased by 668.88 points, or 0.83 percent, reaching 84,621.07, while the Nifty rose by 202.25 points, or 0.79 percent, to 25,912.50 in early Monday trading.
Analysts noted that the capital markets have been influenced by persistent buying from domestic institutional investors (DIIs), slight purchasing by foreign institutional investors (FIIs), and encouraging reports of robust sales during the festival season for automobiles and consumer goods. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, remarked, “A marginal change in FII activity is discernible in recent days. FIIs have substantially reduced their selling and have even turned buyers on some occasions.”
He further highlighted, “For October up to the 17th, FII selling has drastically reduced to only ₹4,114 crore. The primary reason for this shift in FII strategy is the reduced valuation gap between India and other markets. India’s underperformance over the past year has created opportunities for improved performance moving forward.”
Published on October 20, 2025.
