The rupee appreciated by 7 paise against the US dollar, settling at 88.68 (provisional) on Thursday, supported by suspected intervention from the Reserve Bank of India (RBI) amidst a strong US dollar and weak domestic markets.
Forex traders noted that the recent hike in H1-B visa fees and rising crude oil prices were key pressures on the rupee. However, the dollar sales by exporters and intervention reports from the RBI mitigated a sharper decline in the domestic currency.
Concerns over global trade uncertainties and the impact of the US visa fee increase on India’s IT services sector added to investor worries. At the interbank foreign exchange, the rupee opened at 88.65 per dollar, fluctuating between a high of 88.60 and a low of 88.70 during the day.
Ultimately, the domestic currency recovered from its previous low of 88.75, where it closed on Wednesday. Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, indicated that the rupee might remain under pressure due to US Dollar recovery and ongoing global geopolitical tensions, particularly between Russia and Ukraine. Choudhary highlighted that the combination of rising crude oil prices and the US visa fee hike could further strain the rupee, though exporter dollar sales might provide some support. He anticipated that the USD/INR spot price would fluctuate between 88.40 and 89.10.
Additionally, the dollar index, which measures the greenback’s strength against a basket of currencies, was barely down 0.07% at 97.80. Brent crude, a global oil benchmark, traded 0.39% lower at USD 69.04 per barrel in futures.
In the domestic equity market, the Sensex fell by 555.95 points to close at 81,159.68, while the Nifty lost 166.05 points, settling at 24,890.85. Data from the exchange reflected that foreign institutional investors sold equities worth ₹2,425.75 crore on Wednesday.
Meanwhile, Commerce and Industry Minister Piyush Goyal is currently in the US for trade discussions, accompanied by senior officials from his ministry, including Special Secretary and Chief Negotiator Rajesh Agrawal. This visit follows recent negotiations in New Delhi between US Chief Negotiator Brendan Lynch and Agrawal concerning a proposed bilateral trade agreement.
Published on September 25, 2025.
