Rupee Recovers Marginally, Ends at 88.11 Against US Dollar on Strong FII Flows

Mumbai, September 10, 2025: The Indian rupee regained some lost ground on Wednesday, closing 4 paise stronger at 88.11 (provisional) against the US currency, fueled by large foreign fund inflows and a softer greenback.

Trade Talks Boost Sentiment

The US President signaled continued trade talks with India. This brings in the possibility of improvement in bilateral trade ties, which could continue to influence the rupee. However, the gains were limited by an increase in crude oil prices, said forex traders. At the foreign exchange market for interbank, the rupee opened at 88.14 and traded in a narrow range of 88.06 to 88.19 before ending at 88.11.

Recent Rupee Trend

The rupee had reached an intra-day record low of 88.38 against the dollar on Friday before rallying to end at 88.09. On Tuesday, it returned to the 88.15 level but finished marginally lower. Market players observed that the RBI was spotted offloading dollars around the 88.20–88.30 levels, keeping the rupee under a tight range. On Thursday, the domestic currency is likely to move between 87.90 and 88.40.

Global and Domestic Market Indicators

The dollar index fell 0.04% to 97.74. On the equity side, the Sensex gained 323.83 points to 81,425.15, while the Nifty gained 104.50 points to 24,973.10. Brent crude futures rose 0.89% to USD 66.98 per barrel. Geopolitical issues such as attacks by Israel on Hamas leaders in Qatar are also one of the factors that influence oil prices.

FII Inflows

Foreign Institutional Investors (FIIs) also stayed net buyers, buying equities of value ₹2,050.46 crore on Tuesday, exchange data showed. Foreign capital inflows have been a significant support to the rupee in recent sessions.

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