The Indian rupee appreciated for the second consecutive session, rising by 21 paise to close at 87.87 (provisional) against the US dollar on Thursday. This increase was attributed to a weaker dollar against major currencies and a renewed risk appetite among investors.
Forex traders noted that anticipated intervention by the Reserve Bank of India, along with a robust performance in domestic equities, further encouraged investor optimism. The rupee opened below the 88-mark at 87.76 against the dollar and reached an intraday high of 87.68 before ultimately settling at 87.87, marking a gain of 21 paise from the previous session’s close.
On Wednesday, the rupee had made a significant recovery, surging by 73 paise to close at 88.08, its largest intraday gain in nearly four months. Dilip Parmar, a Research Analyst at HDFC Securities, remarked, “The rupee achieved a second day of gains, supported by a softer dollar and a broader shift toward risk-on sentiment. Foreign fund inflows and proactive central bank intervention significantly boosted the currency’s recent rise.”
Parmar indicated that the rupee is expected to stabilize within a limited range as the holiday approaches. However, its future trajectory continues to depend largely on dollar flow dynamics and any significant changes in the global geopolitical environment. In the immediate term, the spot USD/INR shows support at 87.60 and resistance at 88.70.
Meanwhile, the dollar index, which measures the dollar’s strength against a basket of six currencies, was trading down 0.21% at 98.58. Brent crude oil, the global benchmark, was up 0.36% at $62.12 per barrel in futures trading.
On the domestic equity front, the Sensex surged by 862.23 points to close at 83,467.66, while the Nifty rose by 261.75 points to reach 25,585.30. Foreign Institutional Investors (FIIs) purchased equities worth ₹68.64 crore on Wednesday, as per exchange data.
Additionally, India’s exports increased by 6.74% to $36.38 billion in September, while imports surged 16.6%, resulting in a trade deficit of $31.15 billion—the widest in over a year.
Published on October 16, 2025
