The Indian rupee depreciated by 23 paise, closing at 88.71 (provisional) against the US dollar on Thursday, amid the strengthening of the American currency and diminishing expectations of a rate cut by the US Federal Reserve.
Forex traders noted that the dollar surged past the 100 mark after minutes from the Federal Reserve’s recent meeting revealed that a majority of officials opposed a rate cut in December, following the reduction made in October.
In the interbank foreign exchange market, the rupee opened at 88.63 but soon lost ground, hitting an intra-day low of 88.74. The local currency also reached a high of 88.62 during trading. Ultimately, it settled at 88.71 (provisional), marking a decline of 23 paise from the previous day’s close.
On Wednesday, the rupee appreciated by 12 paise, closing at 88.48 against the US dollar.
Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, fell by 0.03 percent to 100.19. Brent crude, the global oil benchmark, was trading 0.71 percent higher at $63.96 per barrel in futures trading.
Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, stated, “We expect the rupee to trade with a slight negative bias due to the rising dollar and decreasing chances of a rate cut by the US Federal Reserve during its December Federal Open Market Committee meeting.” He also indicated that demand for dollars from importers could further pressure the rupee. However, a rise in global risk appetite and optimism regarding India-US trade agreements may provide some support to the rupee at lower levels.
Choudhary further noted, “We may see the RBI intervening as the rupee approaches record low levels. Traders will likely monitor the non-farm payrolls report closely. The USD-INR spot price is anticipated to trade within the range of 88.40 to 89.”
On the domestic equity front, the Sensex rose by 446.21 points to close at 85,632.68, while the Nifty gained 139.50 points to reach 26,192.15.
According to exchange data, Foreign Institutional Investors net purchased equities worth ₹1,580.72 crore on Wednesday.
Commerce and Industry Minister Piyush Goyal noted on Tuesday that “you will hear good news” regarding the proposed trade pact between India and the US once the deal is fair and balanced. This statement followed President Donald Trump’s remarks that the US was “pretty close” to achieving a “fair trade deal” with India, and that he would reduce tariffs on Indian goods “at some point.”
Published on November 20, 2025.
