The Indian rupee closed at 88.58 against the US dollar, gaining 2 paise (provisional) on Wednesday. This uptick was supported by positive momentum in domestic equity markets and declining crude oil prices internationally.
Forex traders noted that a strong US dollar and capital outflows limited the rupee’s gains, with investor concerns lingering over the progress of the proposed India-US trade agreement. The rupee began the day at 88.57, reaching an intra-day high of 88.41 before settling at 88.58, marking a slight increase from the previous day’s close of 88.60.
Anuj Choudhary, a Research Analyst at Mirae Asset ShareKhan, stated, “We expect the rupee to trade with a slight positive bias due to a rise in global risk appetite and optimism surrounding the trade deal. However, a strong dollar and decreasing expectations of interest rate cuts may limit any significant appreciation. Demand for dollars from importers and foreign institutional investor (FII) outflows could pressure the rupee at higher levels.” He predicted that the USD-INR spot price would fluctuate between Rs 88.25 and Rs 88.70.
The dollar index, which reflects the greenback’s strength against a basket of six currencies, was trading 0.18 percent higher at 99.63. Meanwhile, Brent crude, the global oil benchmark, fell by 0.46 percent to USD 64.58 per barrel in futures trading.
On the domestic equity front, the Sensex rose by 513.45 points, or 0.61 percent, to close at 85,186.47, while the Nifty increased by 142.60 points, or 0.55 percent, settling at 26,052.65. According to exchange data, foreign institutional investors sold equities worth Rs 728.82 crore on Tuesday.
Commerce and Industry Minister Piyush Goyal commented on the trade negotiations, stating, “You will hear good news on the proposed trade pact between India and the US once the deal is fair, equitable, and balanced.” Goyal’s remarks followed a statement from US President Donald Trump, who indicated that the US is “pretty close” to finalizing a “fair trade deal” with India and mentioned lowering tariffs on Indian goods “at some point.”
Published on November 19, 2025.
