The Indian rupee gained 12 paise, trading at 88.04 against the US dollar in early trade on Tuesday, as investors awaited developments from US-India trade negotiations in New Delhi. American negotiator Brendan Lynch is set to meet with Indian officials for discussions on the bilateral trade agreement.
Forex traders noted that the rupee has experienced ongoing pressure due to inconsistent market flows and the impact of US President Donald Trump’s tariff decisions. In response, the Reserve Bank of India has increased its intervention in the offshore non-deliverable forward (NDF) market to mitigate volatility, according to market experts.
At the interbank foreign exchange market, the rupee opened at 88.05 and saw a low of 88.04, reflecting a gain of 12 paise from its previous close. Initially, the domestic currency also reached 88.16 against the dollar. On the preceding day, the rupee ended 10 paise higher at 88.16.
Amit Pabari, managing director of CR Forex Advisors, emphasized that this week’s US-India trade talks are pivotal. He remarked that if significant progress is made during the discussions, it could provide necessary support for the rupee, particularly given the strength of India’s economic fundamentals.
Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, traded at 97.22, showing a decrease of 0.08 percent. Brent crude, the global oil benchmark, rose 0.25 percent to $67.61 per barrel in futures trading.
On the domestic equity market, the Sensex rose by 201.69 points to reach 81,987.43 in early trade, while the Nifty saw an increase of 52.8 points, reaching 25,122. However, foreign institutional investors sold equities worth ₹1,268.59 crore on a net basis on Monday, according to exchange data.
On Tuesday, Brendan Lynch, the chief negotiator from the Trump administration, is scheduled to engage in day-long discussions regarding the India-US bilateral trade deal. Six rounds of negotiations for the India-US Bilateral Trade Agreement (BTA) have taken place, with the last round, planned from August 25-29, being postponed after the US imposed 50 percent tariffs on certain Indian goods. This tariff increase has adversely affected India’s exports to the US.
Last week, Prime Minister Modi expressed optimism following President Trump’s favorable assessment of the trade talks, stating confidence that the ongoing negotiations will unlock the vast potential inherent in the partnership between the two nations.
Published on September 16, 2025.
