The Indian rupee concluded Tuesday’s trading session (October 7, 2025) with a slight decline, shedding 4 paise to provisionally close at 88.78 against the US dollar. This downward movement was primarily driven by the strength of the American currency in international markets and persistent outflows of foreign capital from India.
Currency traders noted that the rupee hovered within a narrow band throughout the day, as investors adopted a cautious stance due to lingering uncertainties in global trade dynamics.
Earlier in the interbank foreign exchange market, the rupee had initially shown a modest gain, opening at 88.72. However, it later experienced fluctuations, hitting an intra-day low of 88.79 and a high of 88.79 before ultimately settling at a provisional 88.78, marking a 4-paise depreciation from its prior close.
This follows Monday’s session (October 6, 2025), where the rupee had managed to strengthen by 5 paise, closing at 88.74 against the US dollar.
Market sentiment remained subdued, with investors reacting to news that the U.S. Senate had again rejected proposals from both Democratic and Republican parties to fund the government. This impasse extended the government shutdown into its sixth consecutive day, contributing to global economic uncertainty.
Concurrently, the dollar index, a key indicator measuring the US dollar’s performance against six major currencies, saw an uptick of 0.34%, reaching 98.13.
In commodities, Brent crude, the international benchmark for oil, was observed trading 0.37% lower in futures, priced at $65.25 per barrel.
Adding to the day’s discussions, Commerce and Industry Minister Piyush Goyal stated on Tuesday (October 7, 2025) that India and the U.S. are actively pursuing a bilateral trade agreement, with optimism about meeting the November deadline for its conclusion.
This statement followed remarks from External Affairs Minister S. Jaishankar, who emphasized the previous day that any trade agreement between India and the U.S. must adhere to New Delhi’s ‘red lines,’ indicating ongoing efforts to find common ground.
Mr. Jaishankar acknowledged existing ‘issues’ between the two nations, many of which are hindering the finalization of the trade deal. He highlighted the distinction between negotiable and non-negotiable aspects of the talks.
Despite the currency’s depreciation, India’s domestic equity markets showed resilience, with the Sensex closing up 136.63 points (0.17%) at 81,926.75. The Nifty also saw a modest increase of 30.65 points (0.12%), finishing at 25,108.30.
However, foreign institutional investors continued to pull out funds, offloading equities worth ₹313.77 crore on a net basis on Monday (October 6, 2025), as per exchange data.