On Thursday, October 30, 2025, the Indian rupee concluded its trading day with a notable dip, falling 48 paise to settle provisionally at 88.70 against the robust American dollar. This decline was attributed to a combination of factors, including a stronger U.S. currency, a subdued domestic market, and the U.S. Federal Reserve’s hawkish stance.
Currency traders observed that while the U.S. Federal Reserve did implement an anticipated 25 basis point cut in interest rates during its Federal Open Market Committee (FOMC) meeting, Chairman Jerome Powell’s subsequent remarks were decidedly hawkish. His comments effectively dampened expectations for any further rate cuts in December.
Adding to the rupee’s woes, increased dollar demand from Oil Marketing Companies (OMCs) towards the month-end, coupled with outflows of foreign funds, exerted additional downward pressure on the Indian currency.
In the interbank foreign exchange market, the rupee commenced trading at 88.37 but quickly dropped to an intraday low of 88.74. By the close of trading, the Indian currency was provisionally recorded at 88.70 against the U.S. dollar, marking a 48-paise depreciation from its prior closing rate.
This recent fall contrasts with Wednesday’s performance, when the rupee had shown a modest gain, rising seven paise to end at 88.22 against the dollar.
Anuj Choudhary, a Research Analyst for Currency and Commodities at Mirae Asset ShareKhan, predicted that the rupee would likely maintain a slightly negative trend. He highlighted the influential factors: a powerful U.S. dollar, subdued local market sentiment, a hawkish Federal Reserve, and ongoing month-end dollar requirements from Oil Marketing Companies.
While the U.S. Fed’s 25 basis point rate cut was largely anticipated, Chairman Jerome Powell’s statement that a December rate reduction was far from guaranteed, citing persistent inflation above target and lingering uncertainties in the labor market, significantly impacted market sentiment.
According to traders, Powell’s comments immediately led to a sharp decrease in market expectations for a December rate cut, which, in turn, drove up U.S. Treasury yields and bolstered the dollar’s strength.
Conversely, Choudhary also pointed out that a softening in crude oil prices could offer some support to the rupee, preventing steeper declines. He projected the USDINR spot price to trade within a narrow band of 88.45 to 89.
In related news, the dollar index, a key measure of the greenback’s value against a basket of six major currencies, saw a modest decrease of 0.09%, settling at 99.12.
Global oil prices also registered a decline, with Brent crude futures, the international benchmark, dropping 0.65% to $64.50 per barrel.
Domestically, Indian equity markets reflected the somber mood, with the Sensex plummeting 592.67 points to close at 84,404.46. The Nifty also experienced a notable fall, shedding 176.05 points to finish at 25,877.85.
Exchange data revealed that foreign institutional investors were net sellers, offloading equities valued at ₹2,540.16 crore on Wednesday, further contributing to the market’s weakness.