The Indian rupee experienced range-bound trading on Friday, depreciating by 7 paise to 88.27 against the US dollar, influenced by a strengthening dollar and negative trends in domestic equities.
Forex traders noted that the recovery of the US dollar limited the rupee’s potential for appreciation. Additionally, concerns over US tariffs on Indian imports further affected investor sentiment.
In the interbank foreign exchange market, the rupee opened at 88.22, declining to a low of 88.27, marking a 7 paise drop from its previous close. On Thursday, it had depreciated by 35 paise, finishing at 88.20 against the dollar.
According to Amit Pabari, Managing Director of CR Forex Advisors, although the rupee may have retreated after recent gains, the overall outlook remains positive. “Supportive trade developments and firm domestic confidence suggest there is still room for appreciation,” he stated.
Key support is currently noted at 87.70; a sustained breach of this level could pave the way toward 87.50, and potentially even 87.20 if momentum builds. Conversely, resistance levels are expected to cap any gains around 88.40, Pabari added.
Forex traders also reported that weekly US jobless claims dropped significantly by 33,000, exceeding market expectations. This unexpected improvement lifted the dollar index back toward the 97 mark after nearly dipping below 96 the previous day.
As of now, the dollar index, which measures the greenback’s strength against a basket of six currencies, has fallen by 0.01% to 97.34. Additionally, Brent crude, the global oil benchmark, is trading 0.09% lower at $67.38 per barrel in futures markets.
In the domestic equity markets, the Sensex dropped by 264.36 points to 82,749.60 in early trading, while the Nifty fell by 65 points to 25,358.60. Foreign Institutional Investors purchased equities worth ₹366.69 crore on a net basis on Thursday, according to exchange data.
In trade relations, Commerce and Industry Minister Piyush Goyal indicated that negotiations between India and the US are making progress. He highlighted that Brendan Lynch, Assistant US Trade Representative for South and Central Asia, visited New Delhi on September 16 for discussions with the Indian official team. These talks are especially pertinent given the steep 50% tariffs imposed by the US on Indian goods.
Published on September 19, 2025
