The Indian rupee appreciated by 10 paise, reaching 88.60 against the US dollar (provisional) on Thursday, buoyed by a weaker dollar in the international marketplace. However, sluggish sentiment in domestic equity markets and ongoing foreign capital outflows capped the rupee’s gains, according to forex traders.
In intraday trade on the interbank foreign exchange, the rupee opened at 88.51 and peaked at 88.49 against the dollar. It also dipped to a low of 88.66 before concluding the session at 88.60 (provisional), marking a 10 paise increase from the previous closing value. Notably, the rupee had previously settled up by 7 paise to 88.70 on Tuesday. The foreign exchange markets were closed on Wednesday in observance of the Prakash Gurpurab holiday.
According to Jateen Trivedi, VP Research Analyst—Commodity and Currency at LKP Securities, the rupee was supported by the dollar index’s weakness; however, persistent foreign institutional investor (FII) selling created downward pressure on the currency. “Market participants are now focused on key US economic data releases this week, including the ISM Manufacturing and Non-Manufacturing PMI, which could impact dollar movement and global risk sentiment. The rupee is expected to remain range-bound in the near term, with a trading band estimated between 88.40-88.90,” Trivedi stated.
In a monthly survey released on Thursday, the growth of India’s services sector showed its slowest expansion in five months in October, attributed to competitive pressures and heavy rainfall in various regions, which contributed to a slower increase in output. The seasonally adjusted HSBC India Services PMI Business Activity Index fell from 60.9 in September to 58.9 in October, indicating this slowdown.
Meanwhile, the dollar index, which measures the greenback’s performance against a basket of six currencies, declined by 0.23 percent to 99.83. Brent crude, the global oil benchmark, increased by 1.10 percent, settling at $64.22 per barrel in futures trading.
In domestic equity markets, the Sensex fell by 148.14 points or 0.18 percent, closing at 83,311.01, while the Nifty dropped by 87.95 points, or 0.34 percent, to finish at 25,509.70. Foreign institutional investors reportedly sold equities worth ₹1,067.01 crore on Tuesday, as per exchange data.
Published on November 6, 2025.
