The Indian rupee gained 5 paise to reach 88.75 against the US dollar in early trading on Wednesday, as investors awaited the Reserve Bank of India’s (RBI) monetary policy decision.
Forex traders reported that the rupee fluctuated within a narrow range following its previous drop to an all-time low of 88.80 on Tuesday. This decline was predominantly driven by ongoing foreign fund outflows and escalating trade concerns.
Investor sentiment is further influenced by the Monetary Policy Committee’s upcoming decisions, with expectations leaning toward maintaining the current key interest rate. The RBI began its three-day deliberations on September 29, amidst ongoing geopolitical tensions and a backdrop of the US imposing significant tariffs on Indian exports.
At the interbank foreign exchange market, the rupee opened at 88.79 before rising to 88.75, an increase of 5 paise from its prior closing value. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, indicated that pressure from US President Donald Trump regarding India’s oil purchases from Russia has contributed to negative sentiments surrounding the rupee, impacting the broader equity market.
Bhansali noted that while the RBI’s intervention has been somewhat limited, the overall trend for the USD/INR pair remains negative due to strong dollar demand and caution regarding India’s macroeconomic conditions.
The dollar index, which measures the currency’s strength against a basket of six major currencies, was trading at 97.84, up by 0.07 percent. Meanwhile, Brent crude oil, a global benchmark, saw a slight increase of 0.15 percent, reaching USD 66.13 per barrel in futures trading.
On the domestic front, the Sensex rose by 142.63 points to 80,410.25 in early trade, while the Nifty increased by 50.75 points to 24,661.85. Additionally, data from the Controller General of Accounts (CGA) revealed that the Centre’s fiscal deficit had hit 38.1 percent of the full-year target by the end of August, compared to 27 percent of the Budget Estimates for 2024-25 during the same period last year.
Foreign Institutional Investors reported offloading equities worth ₹2,327.09 crore on Tuesday, according to exchange data.
Published on October 1, 2025.
