The Indian rupee depreciated by 15 paise, settling at 88.65 against the US dollar in early trading on Wednesday, impacted by high crude oil prices and outflows from foreign funds. Forex traders noted that renewed optimism surrounding the India-US trade deal provided some support for the local currency at lower levels.
At the interbank foreign exchange market, the rupee opened at 88.61 against the dollar but fell to 88.65, a decline of 15 paise from the previous close. On Tuesday, the rupee had concluded trading at 88.50 against the dollar.
Traders indicated that the MSCI Review could lead to positive inflows from foreign funds. Global index provider MSCI announced that Fortis Healthcare, GE Vernova T&D India, One 97 Communications (Paytm), and Siemens Energy India would be included in its Global Standard Index. These additions are anticipated to trigger passive inflows into these stocks as global investment firms adjust their portfolios.
CR Forex Advisors Managing Director Amit Pabari remarked, “As these passive inflows pour in, they could provide an additional cushion to the rupee in the near term, offsetting any temporary weakness from global uncertainty.” Additionally, the optimism regarding an impending US trade deal contributed to the stability of the domestic currency.
President Donald Trump has indicated that the US is “pretty close” to finalizing a “fair trade deal” with India, mentioning plans to reduce tariffs on Indian goods “at some point.” This marks the second instance in less than two weeks where the president has expressed optimism about the proposed bilateral trade agreement.
Meanwhile, the dollar index, which measures the currency’s strength against a basket of six others, was up by 0.06 percent, trading at 99.50. Brent crude oil, the global benchmark, was trading 0.26 percent lower at $65 per barrel in futures.
On the domestic equity front, the Sensex surged by 502.82 points, reaching 84,374.14, while the Nifty rose by 144.05 points to 25,839. Furthermore, Foreign Institutional Investors sold equities worth ₹803 crore on Tuesday, based on exchange data.
Published on November 12, 2025.
