On Wednesday, October 29, 2025, the Indian rupee closed stronger against the U.S. dollar, appreciating by eight paise to a provisional rate of 88.21. This positive movement was largely attributed to robust domestic market performance and growing optimism surrounding an upcoming trade deal between India and the United States.
Currency traders noted that positive market sentiment, bolstered by the anticipated trade agreement and a dip in crude oil prices, significantly boosted investor confidence. However, a consistent demand for dollars from importers prevented the rupee from making more substantial gains.
Despite the gains, market participants remained watchful, anticipating the outcome of the U.S. Federal Open Market Committee (FOMC) meeting.
In the interbank foreign exchange market, the rupee commenced trading at 88.21. Throughout the day, it fluctuated between 88.15 and 88.35 before settling provisionally at 88.21 against the dollar, marking an eight-paise appreciation from its last closing value.
The previous day, Tuesday, October 28, 2025, saw the rupee weakening, closing at 88.29 against the U.S. dollar, a depreciation of 10 paise.
Anuj Choudhary, a research analyst specializing in currency and commodities at Mirae Asset ShareKhan, shared his outlook: “We anticipate the rupee to maintain a slightly positive trajectory, supported by favorable domestic market conditions and lower crude oil prices. The optimistic sentiment surrounding the trade deal could further bolster the rupee’s performance.”
U.S. President Donald Trump’s statement, “I’m doing a trade deal with India,” has added to the positive sentiment. Nevertheless, Mr. Choudhary cautioned that heightened dollar demand from importers at the month-end might limit any significant upward surge. He reiterated the need for investor caution ahead of the FOMC decision, projecting the USDINR spot price to trade within the 87.85 to 88.60 range.
Concurrently, the dollar index, a measure of the U.S. dollar’s value against six major currencies, climbed by 0.21% to reach 98.87.
In commodities, Brent crude, the international benchmark for oil, saw a modest increase of 0.22%, trading at $65.54 per barrel in futures.
India’s domestic equity markets also performed strongly, with the Sensex advancing 368.97 points to close at 84,997.13, and the Nifty gaining 117.70 points, settling at 26,053.90.
Exchange data revealed that Foreign Institutional Investors (FIIs) were net buyers on Tuesday, investing ₹10,339.80 crore in equities.
Official data released on Tuesday indicated that India’s industrial production growth held steady at 4% in September. This consistent performance was primarily fueled by robust activity in the manufacturing sector, which benefited from GST rationalization and heightened festive demand.
Specifically, factory output, as measured by the Index of Industrial Production (IIP), recorded a 3.2% expansion in September 2024.