The Indian rupee experienced a slight dip on Tuesday, October 28, 2025, settling 8 paise lower at 88.27 against the robust U.S. dollar. This downturn was largely influenced by a subdued domestic stock market and a continuous trend of foreign capital exiting Indian equities.
Despite the rupee’s decline, foreign exchange traders noted that a broader weakness in the U.S. dollar and a reduction in global crude oil prices helped mitigate a steeper fall for the Indian currency.
Market participants are now keenly awaiting the Federal Reserve’s crucial policy decision, expected on Wednesday, October 29. The outcome of this meeting is anticipated to provide significant direction for global currency markets.
During Tuesday’s interbank foreign exchange trading, the rupee began the day at 88.34. It fluctuated between a high of 88.23 and a low of 88.40 before provisionally closing at 88.27, marking an 8-paise depreciation from Monday’s closing rate.
This modest fall follows a more significant decline on Monday, October 27, when the rupee had dropped by a substantial 36 paise to conclude trade at 88.19 against the U.S. dollar.
Anuj Choudhary, a Research Analyst specializing in Currency and Commodities at Mirae Asset ShareKhan, commented on the outlook: ‘We foresee the rupee continuing with a slightly negative trend, driven by sluggish domestic stock performance and increased dollar demand from importers at month-end. Nevertheless, positive sentiment surrounding potential trade agreements between India and the U.S. could offer some support to the rupee at its lower valuation points.’
Choudhary added that investors are likely to exercise caution leading up to the U.S. Federal Open Market Committee (FOMC) meeting announcement. He projected the USD/INR spot price to trade within a range of 87.90 to 88.60.
Globally, the dollar index, which measures the greenback’s value against six major currencies, experienced a modest decline of 0.09%, settling at 98.69.
In commodity markets, Brent crude, the international benchmark for oil, saw its futures trading price fall by 1.74%, reaching $64.48 per barrel.
India’s domestic equity markets mirrored the cautious sentiment, with the Sensex closing down by 150.68 points at 84,628.16, and the Nifty registering a 29.85-point drop to end at 25,936.20.
Exchange data revealed that Foreign Institutional Investors (FIIs) were net sellers on Monday, October 27, offloading equities valued at ₹55.58 crore.
In related news, India’s crude oil imports from the United States reached their highest volume since 2022 during October. This strategic move by New Delhi is interpreted as an effort to diversify its energy supply sources beyond Russia and to potentially alleviate trade tensions with the current U.S. administration.
Data provided by Kpler indicated that India’s U.S. crude imports hit 540,000 barrels per day by October 27, marking a new peak since 2022.
Projections based on U.S. export data suggest that October’s total imports could approach 575,000 barrels per day, with November estimates ranging between 400,000-450,000 bpd. This represents a significant increase compared to the year-to-date average of approximately 300,000 bpd.