The Indian Rupee has hit an unprecedented low against the U.S. dollar, falling 4 paise to a provisional 88.79. This depreciation on Tuesday, September 30, 2025, was primarily driven by a continuous exodus of foreign capital and prevailing uncertainties in global trade.
However, the local currency was somewhat shielded from a more drastic fall by a significant drop in international crude oil prices and a slightly weaker greenback, as noted by foreign exchange traders.
Market participants are now keenly awaiting the Reserve Bank of India’s (RBI) Monetary Policy Committee’s crucial decision, slated for announcement on Wednesday, October 1.
The rupee commenced trading at 88.73 against the dollar in the interbank foreign exchange market, fluctuating between 88.69 and 88.80 before ultimately settling at 88.79, marking a 4-paise decline from its previous close.
On Monday, the rupee had seen a marginal consolidation, closing 3 paise lower at 88.75 against the U.S. currency.
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, commented on the situation: “The rupee faced relentless downward pressure from Foreign Portfolio Investors (FPIs) actively purchasing dollars. It appears the RBI was present in the market, supplying dollars to curb the fall. The currency has remained susceptible to FPI selling ever since the ‘trade trauma’ began in August, when then-U.S. President Donald Trump imposed 50% tariffs on Indian exports.”
Bhansali anticipates the rupee to trade within a range of 88.50 to 89.00 on Wednesday.
This upcoming RBI meeting is particularly significant, occurring amidst escalating geopolitical tensions and the U.S.’s decision to implement a 50% tariff on Indian shipments.
Globally, the dollar index, which measures the dollar’s value against a basket of six major currencies, was trading marginally lower at 97.79, a drop of 0.11%.
Meanwhile, the price of Brent crude, the international oil benchmark, saw a 1.03% decrease in futures trading, reaching $67.27 per barrel.
In the domestic equity markets, the Sensex closed down by 97.32 points at 80,267.62, while the Nifty also slipped by 23.80 points to finish at 24,611.10.
Data from exchanges indicated that Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,831.59 crore on Monday.
Adding another layer of complexity, the U.S. has announced a new policy: a 100% tariff will be levied on branded or patented drugs imported from October 1, unless the pharmaceutical companies establish manufacturing facilities within the U.S.