Rupee Slips 5 Paise to 88.77 Against US Dollar as Dollar Strength and Crude Rise Weigh on Currency

Mumbai, 13 October 2025: The Indian rupee edged lower in early trade on Monday, declining 5 paise to 88.77 against the US dollar. A firm greenback, rising crude oil prices, and cautious global sentiment contributed to the modest dip, keeping the domestic currency near its record closing low.

Rupee Trades in Narrow Band Amid Global Uncertainty

At the interbank foreign exchange market, the rupee opened at 88.75 and eased slightly to 88.77 per dollar, compared with Friday’s close of 88.72. The currency has remained confined to a tight range over recent sessions, reflecting a cautious global outlook and domestic policy stability. The Reserve Bank of India (RBI) continues to monitor the USD-INR movement closely as it approaches the 88.80 threshold.

Dollar Strength Adds Pressure, Brent Crude Rises 1.50% to USD 63.67

The dollar index, tracking the greenback against a basket of six major currencies, inched down 0.04% to 98.93, indicating underlying strength of the US currency. At the same time, Brent crude futures surged 1.50% to USD 63.67 per barrel, adding cost pressures and weighing on the rupee. The combined effect of a resilient dollar and higher crude imports is contributing to the rupee’s subdued performance.

Domestic Equities Open Lower Despite Foreign Inflows

Indian stock markets opened on a weaker note, with the BSE Sensex down 451.82 points to 82,049 and the Nifty 50 slipping 109.55 points to 25,175.80. Despite the early declines, Foreign Institutional Investors (FIIs) remained active, purchasing equities worth ₹459.20 crore on Friday, as per exchange data, reflecting ongoing foreign participation in domestic markets.

India’s Forex Reserves Fall Slightly Below USD 700 Billion

India’s foreign exchange reserves fell by USD 276 million to USD 699.96 billion in the week ending 3 October, following a USD 2.334 billion drop the previous week. The decline keeps reserves just below the USD 700 billion mark, highlighting minor pressures on the currency buffer amidst global volatility and capital flows.

The rupee’s minor dip reflects a combination of global factors, including dollar strength and rising crude prices, while domestic policy and reserve buffers remain stable. Investors and market participants can monitor these macroeconomic indicators to track currency and capital market trends without expecting immediate changes in underlying investment value.

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