On Tuesday, October 7, 2025, the Indian rupee concluded its trading day with a modest decline, settling 4 paise lower at a provisional rate of 88.78 against the US dollar. This dip was primarily attributed to the dollar’s persistent strength in international markets and a continued outflow of foreign capital from India.
Throughout the session, the local currency moved within a narrow band, reflecting a cautious stance among investors. Forex traders noted that widespread uncertainties surrounding global trade dynamics encouraged market participants to largely stay on the sidelines.
In the interbank foreign exchange market, the rupee initially saw a slight uptick, opening at 88.72 against the US dollar. However, it later touched an intra-day low of 88.79 and a high of 88.79 before closing provisionally at 88.78, marking a 4-paise depreciation from its prior closing value.
This contrasted with Monday, October 6, 2025, when the rupee had shown resilience, appreciating by 5 paise to settle at 88.74 against the US dollar.
Investor sentiment remained conservative, particularly after the U.S. Senate again failed to pass funding proposals from both Democratic and Republican parties. This legislative impasse extended the government shutdown into its sixth consecutive day, adding to global economic jitters.
Adding pressure on the rupee, the dollar index—a measure of the greenback’s strength relative to a basket of six major currencies—rose by 0.34% to 98.13, indicating a stronger US dollar globally.
In commodity markets, Brent crude, the international benchmark for oil, saw a modest decline, trading 0.37% lower at $65.25 per barrel in futures trading.
Amidst these financial movements, Commerce and Industry Minister Piyush Goyal confirmed on Tuesday, October 7, 2025, that India and the U.S. are actively engaged in discussions regarding a prospective bilateral trade agreement. He expressed optimism about meeting the November deadline for finalizing these talks.
Minister Goyal’s remarks followed those made by External Affairs Minister S. Jaishankar just a day earlier. Jaishankar had emphasized that any trade agreement between the two nations must unequivocally respect New Delhi’s “red lines” and that ongoing efforts are focused on achieving a mutual understanding.
Despite the rupee’s performance, India’s domestic equity markets showed positive movement. The Sensex index rose by 136.63 points (0.17%) to close at 81,926.75, while the Nifty gained 30.65 points (0.12%), settling at 25,108.30.
However, foreign institutional investors remained net sellers, divesting equities worth ₹313.77 crore on Monday, October 6, 2025, as per available exchange data.