The Indian Rupee experienced a somewhat subdued trading session on Wednesday, eventually closing down by three paise at a provisional rate of 88.80 against the U.S. dollar. This slight depreciation mirrored a negative trend in domestic stock markets and a general increase in risk aversion among investors.
According to foreign exchange experts, the U.S. dollar is currently holding its ground. However, beneath this seemingly stable exterior, a discernible undercurrent of tension is emerging in the broader currency markets.
Despite this, the rupee is anticipated to trade within a relatively narrow range. Support for the Indian currency is expected from domestic factors, including inflows related to initial public offerings (IPOs). Furthermore, any positive developments in ongoing trade negotiations between the U.S. and India could gradually shift sentiment in the rupee’s favor.
In the interbank foreign exchange market, the rupee commenced the day at 88.76 against the greenback. It touched an intraday low of 88.81 before settling at its provisional closing rate of 88.80, registering a modest loss of 3 paise compared to its previous close.
This performance follows a similar trend on Tuesday, October 7, 2025, when the rupee also fell by three paise, closing at 88.77 against the U.S. dollar.
Globally, the dollar index, which measures the strength of the U.S. currency against a basket of six major rivals, was observed trading 0.31% higher at 98.88, indicating a strengthening dollar.
Concurrently, Brent crude, a key international oil benchmark, saw its futures trading 1.25% higher, reaching $66.27 per barrel.
On the domestic equity front, foreign institutional investors (FIIs) were net purchasers, acquiring equities worth ₹1,440.66 crore on Tuesday, October 7, 2025, according to exchange data.
In other related news, Commerce and Industry Minister Piyush Goyal announced on Tuesday, October 8, 2025, that ongoing discussions between India and the U.S. regarding a proposed bilateral trade agreement are progressing. He highlighted that there remains a strong possibility of meeting the November deadline for concluding these talks.
Addressing the prospect of future in-person trade negotiations, Minister Goyal noted that while such a possibility exists, the current shutdown of the U.S. government introduces uncertainty regarding when and where the next round of discussions will take place.