The Indian rupee made a strong recovery on Tuesday, November 4, 2025, closing 11 paise higher at 88.66 (provisional) against the U.S. dollar. This positive movement, which helped it recover from recent record lows, was largely fueled by a significant drop in international crude oil prices.
However, forex traders noted that a firm dollar, coupled with continuous outflows of foreign funds and a weak performance in domestic stock markets, prevented the Indian currency from achieving an even sharper appreciation.
In the interbank foreign exchange market, the rupee opened at 88.55 and touched an intraday high of 88.28 against the greenback. It later dipped to 88.67 before settling at its provisional closing rate of 88.66 against the dollar, an 11 paise gain from its previous close.
Just one day prior, on Monday, November 3, 2025, the domestic unit had experienced its third consecutive session of decline, closing 7 paise lower at 88.77 against the U.S. dollar, nearing its all-time closing level. The rupee’s lowest-ever closing point was recorded at 88.81 against the dollar on October 14.
The foreign exchange markets are scheduled to be closed on Wednesday in observance of the Prakash Gurpurb holiday.
Globally, the dollar index, which measures the U.S. dollar’s strength against a basket of six major currencies, climbed 0.09 percent to 99.80.
Meanwhile, Brent crude, a key international oil benchmark, saw its futures trading price fall by 1.37 percent to $64 per barrel.
On the domestic equity markets front, both major indices experienced a downturn. The Sensex dropped 519.34 points, or 0.62%, to finish at 83,459.15, while the Nifty fell 165.70 points, or 0.64%, to conclude at 25,597.65.
Foreign institutional investors (FIIs) sold equities worth ₹1,883.78 crore on Monday, November 3, 2025, according to exchange data.
Adding to the broader economic context, a monthly survey released on Monday, November 3, 2025, indicated a strengthening in India’s manufacturing sector activity during October. This boost was attributed to Goods and Services Tax (GST) relief, improved productivity, and technological investments, even as international sales growth moderated.
Specifically, the seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) increased to 59.2 in October from 57.7 in September, signaling a faster pace of improvement in the sector’s overall health.