Rupee Dips 12 Paise to 87.95 vs US Dollar as Crude Prices Strengthen

Mumbai, October 27, 2025: The Indian rupee declined 12 paise to 87.95 against the US dollar in early trade on Monday as firm global crude oil prices weighed on the currency and sentiment remained guarded on renewed hopes of US-China trade talks.

Crude Oil Strength Weighs on Rupee

At the foreign exchange market for interbanks, the rupee opened at 87.87 and dipped to 87.95 against the dollar, versus Friday’s close of 87.83. The currency took a hit as crude oil prices edged higher, fueling worries over India’s import bill.

Brent crude, the international oil benchmark, rose by 0.02% to USD 65.95 per barrel in futures trading. Experts indicated that the weakness of the currency reflected global risk positioning, as expectations were that US-China trade negotiations could boost oil demand.

Dollar Index Steady; Global Cues Watched by Traders

The US dollar index, which measures the greenback’s strength against six major currencies, fell 0.04% to 98.91. Market players continued to monitor global events, such as geopolitical tensions and trade policy results that would influence capital flows and commodity prices.

Equities Edge Higher, Providing Cautious Support

Domestic equities started on a bright note, providing some protection to the rupee. The BSE Sensex gained 272.7 points to 84,484.58, while the NSE Nifty added 88.55 points to 25,883.70 in early trade. Foreign Institutional Investors (FIIs) were net investors of ₹621.51 crore on Friday, according to exchange data.

Forex Reserves Cross USD 702 Billion

India’s foreign exchange reserves increased by USD 4.50 billion to USD 702.28 billion for the week to October 17 on account of an increase in gold reserves. Economists foresee the rupee to be range-bound in the near future, directed by crude price moves, foreign fund inflows, and global macroeconomic signals.

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