The Indian rupee depreciated 12 paise, reaching an all-time low of 88.80 against the US dollar on Tuesday. This decline was attributed to falling domestic equities and the US dollar’s overnight gains.
Forex traders noted that foreign fund outflows linked to a global risk-off sentiment further undermined investor confidence. However, a drop in crude oil prices and indications of intervention by the Reserve Bank of India (RBI) helped to support the rupee, limiting its decline.
At the interbank foreign exchange market, the rupee began trading at 88.73 and fell to an intraday low of 88.81 before closing at 88.80. This represented a decrease from the previous close of 88.68. The rupee had earlier reached the same low of 88.80 against the dollar on September 30.
The dollar index, which measures the US currency’s strength against a basket of six currencies, was up 0.10 percent at 99.36. In the commodities market, Brent crude, the global oil benchmark, traded down by 2.15 percent at $61.99 per barrel in futures.
Experts suggest that US-India trade tariffs are a significant factor impacting investor sentiment. A delegation of senior Indian officials is set to visit the US this week for trade discussions. Progress has been reported on negotiations for a proposed Bilateral Trade Agreement (BTA), which was initially directed by the leaders of both countries in February. The first phase of the agreement is slated for conclusion by fall 2025, with five rounds of talks already completed.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, commented, “A weak tone in global crude oil prices and FII inflows may favor the rupee. The US government shutdown and increasing probabilities of a rate cut by the US Federal Reserve may further impact the US dollar. The USD/INR spot price is expected to range between 88.50 and 89.”
In domestic macroeconomic updates, India’s Consumer Price Index (CPI) inflation dropped to an eight-year low of 1.54 percent in September, down from 2.07 percent in August, falling below the RBI’s inflation target of 2 percent. Similarly, Wholesale Price Index (WPI) inflation decreased to 0.13 percent in September from 0.52 percent the previous month.
On the equity market front, the Sensex fell by 297.07 points to close at 82,029.98, while the Nifty declined by 81.85 points to 25,145.50. Foreign Institutional Investors (FIIs) sold equities worth ₹240.10 crore on Monday, as per exchange data.
Published on October 14, 2025.
