The Indian rupee showed a strong performance on Monday, October 20, 2025, closing up 9 paise at a provisional 87.93 against the U.S. dollar. This positive movement was largely fueled by a healthy influx of foreign funds and a noticeable dip in international crude oil prices.
Optimistic sentiment across India’s equity markets also played a significant role in boosting the local currency, as noted by foreign exchange traders.
Throughout Monday’s interbank foreign exchange trading, the rupee commenced at 87.94 against the dollar. It then fluctuated between 87.74 and 87.94 before settling confidently at 87.93, marking a 9-paise increase from its Friday closing of 88.02.
Anil Kumar Bhansali, Executive Director at Finrex, highlighted the Reserve Bank of India’s role in keeping the rupee from weakening past the 88-mark. He also pointed to hopeful signs from government-level discussions on U.S.-China trade relations, suggesting a potential amicable resolution that could calm global markets.
Looking ahead, India’s stock exchanges are set to host a special ‘Muhurat’ trading session on Tuesday, from 1:45 PM to 2:45 PM, in observance of Laxmi Pujan. However, the broader forex markets will remain closed for both Tuesday and Wednesday.
Bhansali predicts that after the two-day holiday, the rupee will likely trade within the 87.70 to 88.30 range on Thursday.
Globally, the dollar index, which measures the U.S. currency against six major counterparts, saw a slight uptick of 0.1% to reach 98.53. Meanwhile, Brent crude, a key international oil benchmark, experienced a minor decline of 0.36%, trading at $61.07 per barrel in futures.
In the domestic equity arena, the Sensex surged by 411.18 points, closing at 84,363.37, while the Nifty climbed 133.30 points to settle at 25,843.15. This strong market performance indicates investor confidence.
Foreign Institutional Investors (FIIs) demonstrated their confidence by purchasing equities worth ₹308.98 crore on Friday. Conversely, India’s forex reserves saw a decrease of $2.176 billion, standing at $697.784 billion for the week ending October 10, according to recent RBI data.