The Indian rupee demonstrated slight recovery by trading 5 paise higher at 88.64 against the US dollar in early trading on Friday, influenced by falling crude oil prices and a weakened American currency.
Forex traders noted that the outflow of foreign investments amid selling pressures in the equity markets capped significant gains for the domestic currency. At the interbank foreign exchange, the rupee opened at 88.60, climbing to 88.59 before settling at 88.64 against the greenback, an increase of 5 paise from the previous close.
On Thursday, the rupee had experienced a notable decline, dropping 47 paise to end at 88.69 following the US Federal Reserve’s decision to lower interest rates by 25 basis points, a move that was anticipated. However, Fed Chair Jerome Powell highlighted persistent inflation levels above target and uncertainties within the labor market, dampening expectations for further rate cuts in the upcoming December policy meeting.
In related economic indicators, the dollar index, which measures the strength of the dollar against a basket of six currencies, declined by 0.02 percent to 99.33. Brent crude, the international oil benchmark, fell by 0.68 percent to $64.56 per barrel in futures trading.
On the domestic equity front, the Sensex rose by 192.31 points, or 0.23 percent, to reach 84,596.77 in early trading, while the Nifty gained 42.05 points, or 0.16 percent, to settle at 25,919.90. According to exchange data, foreign institutional investors sold equities worth ₹3,077.59 crore on Thursday.
Published on October 31, 2025.
