The Indian rupee depreciated by 7 paise to close at 88.78 (provisional) against the US dollar on Friday, nearing its all-time low due to increased dollar demand from importers and ongoing foreign fund outflows. Forex traders noted that the USD/INR pair is languishing close to its historical lows amid trade tensions and global uncertainties.
Additionally, persistent outflows from foreign investors and concerns regarding rising US visa fees further pressured the domestic currency. The rupee opened at 88.68 against the dollar in the interbank foreign exchange market, reached an intraday low of 88.85, and ultimately settled at 88.78 (provisional), a decline of 7 paise from the previous close.
On Wednesday, the rupee gained 9 paise from its previous record closing low, finishing at 88.71 against the dollar. The forex, equity, bullion, and commodity markets were closed on Thursday in observance of Gandhi Jayanti and Dussehra.
On September 30, the rupee had hit an all-time low of 88.80 against the dollar. Anuj Choudhary, Research Analyst for Currency and Commodities at Mirae Asset ShareKhan, stated, “We expect the rupee to strengthen amid broad weakness in the US dollar and a decline in global crude oil prices. However, importer demand for the dollar may limit significant gains.” Choudhary further indicated that the US dollar could weaken due to the lack of economic data from the US amid a government shutdown, projecting the USD-INR spot price to trade within a range of 88.40 to 89.
Meanwhile, the dollar index, which measures the US dollar’s strength against a basket of six currencies, was trading at 97.78, down 0.06 percent due to the ongoing government shutdown. Brent crude, the global oil benchmark, was trading 1.03 percent higher at $64.77 per barrel in futures markets.
In the domestic equity markets, the Sensex increased by 223.86 points to end at 81,207.17, while the Nifty rose by 57.95 points to settle at 24,894.25. On Wednesday, foreign institutional investors sold equities worth ₹1,605.20 crore on a net basis, according to exchange data.
The Reserve Bank of India (RBI) opted to maintain its key interest rates unchanged on Wednesday, seeking more clarity on the effects of US tariffs and the impact of prior rate cuts and recent tax reductions. RBI Governor Sanjay Malhotra indicated that there may be room for easing in the coming months to bolster the economy against potential challenges from US tariffs.
Published on October 3, 2025.
