The Indian rupee appreciated by 25 paise to close at 87.84 (provisional) against the US dollar on Wednesday, buoyed by a positive trend in domestic equities and growing optimism surrounding US–India trade negotiations.
Forex traders reported that the rupee strengthened for the fourth consecutive session, reaching its highest value in two and a half weeks due to broad weakness in the American currency and expectations of a potential interest rate cut by the US Federal Reserve. Investors are closely monitoring the Fed’s policy decisions, as global dollar weakness is enhancing the rupee’s value.
Market expectations indicate a 25-basis point rate cut, leading investors to anticipate further guidance from the Fed chair’s upcoming speech. In the interbank foreign exchange market, the rupee opened at 87.84, recorded an intraday low of 87.71, and peaked at 87.86 against the greenback, ultimately closing at 87.84, marking a gain of 25 paise from its previous close.
On Tuesday, the rupee had appreciated by 7 paise, closing at 88.09 against the US dollar. Anuj Choudhary, a Research Analyst in currency and commodities at Mirae Asset ShareKhan, stated, “We expect the rupee to strengthen further amid sustained weakness in the US dollar ahead of the FOMC meeting decision. Markets expect a 25-bps rate cut.” He further commented that any dovish language from the Fed could result in further declines in the US dollar and improve global risk sentiments.
The dollar index, which measures the greenback’s performance against a basket of six currencies, increased by 0.16 percent to 96.78. Meanwhile, Brent crude, the global oil benchmark, was trading 0.66 percent lower at $68.02 per barrel in futures markets.
On the domestic equity front, the Sensex rose by 313.02 points to close at 82,693.71, while the Nifty gained 91.15 points to reach 25,330.25. Foreign Institutional Investors (FIIs) purchased net equities worth ₹308.32 crore on Tuesday, according to exchange data.
In trade relations, the US described the talks between its chief trade negotiator, Brendan Lynch, and his Indian counterpart, Rajesh Agrawal, as “positive.” This interaction follows a period of tension between New Delhi and Washington, exacerbated when US President Donald Trump increased tariffs on Indian goods by 50 percent, which included an additional 25 percent duty on India’s purchase of Russian crude oil.
Published on September 17, 2025.
