The Indian rupee strengthened by 21 paise to 87.75 against the US dollar in early trading on Friday, bolstered by a weaker American currency and possible intervention from the Reserve Bank of India.
Forex traders noted that renewed foreign fund inflows and declining crude oil prices further improved investor sentiment. In the interbank foreign exchange market, the rupee opened at 87.91 before appreciating to a high of 87.75, marking a gain of 21 paise from its previous closing.
On Thursday, the rupee gained 12 paise to end at 87.96 against the dollar, reflecting gains for the second consecutive session. “After weeks of drifting in uncertain waters, the currency now seems to have found a favourable current—supported by a softer US dollar, returning investor confidence, and the Reserve Bank’s steady hand at the helm,” stated Amit Pabari, Managing Director of CR Forex Advisors.
Pabari added that if the rupee breaks below 87.50, it may pave the way towards 86.80 to 87.00, indicating potential for further appreciation. Conversely, he identified the 88.30 to 88.40 range as a significant resistance zone.
The dollar index, which measures the greenback’s performance against a basket of six other currencies, was trading down by 0.16 percent at 98.17. Meanwhile, Brent crude, the global oil benchmark, fell by 0.26 percent to $60.90 per barrel in futures trading.
On the domestic equity front, the Sensex declined by 261.58 points to 83,206.08, while the Nifty dropped 76.7 points to 25,508.60. Foreign Institutional Investors (FIIs) purchased equities worth ₹997.29 crore on Thursday, according to exchange data.
Pabari remarked, “After weeks of outflows, this return of foreign money is more than just a number—it signals renewed faith in India’s growth story and stability. When capital begins flowing back, currencies often follow suit.”
In related news, Commerce and Industry Minister Piyush Goyal announced that India has successfully executed numerous free trade agreements (FTAs) with developed nations and is actively engaging in negotiations with countries such as the US, Oman, and the European Union.
“We have signed free trade agreements with various developed countries in the past three years and are in ongoing discussions with the US, EU, Chile, Peru, New Zealand, and Oman,” Goyal informed reporters. “This clearly indicates that India is a preferred destination for both investment and bilateral trade.”
Published on October 17, 2025.
