Rupee Falls to 88.77 Against US Dollar Amid Global Uncertainties
The Indian rupee declined by 7 paise to 88.77 against the US dollar in early trade on Monday, November 3, 2025, pressured by rising crude oil prices and sustained foreign capital outflows amid global trade uncertainties.
Key Market Drivers
- Higher Brent crude prices and foreign institutional investor selling
- Negative domestic equity sentiment despite weak US dollar support
- Recent Fed commentary continuing to impact currency markets
Forex traders noted that negative sentiment in domestic equities further pressured the rupee, although a weaker American currency provided some cushion at lower levels. At the interbank foreign exchange market, the rupee opened at 88.73 before slipping to 88.77 against the greenback.
Recent Trading Pattern
The rupee had ended 1 paisa lower at 88.70 on Friday, following a significant 47-paise crash on Thursday after US Federal Reserve Chair Jerome Powell’s commentary.
Global Market Indicators
The dollar index, measuring the greenback against six major currencies, fell 0.04% to 99.59. Meanwhile, Brent crude futures, the global oil benchmark, rose 0.31% to ₹64.97 per barrel.
Domestic Equity Performance
Indian equity markets also opened weak, with the Sensex declining 258.83 points (0.31%) to 83,679.88 and the Nifty falling 47.95 points (0.19%) to 25,674.15 in early trade.
Capital Outflows and Forex Reserves
Foreign institutional investors sold equities worth ₹6,769.34 crore on Friday, according to exchange data. RBI data showed India’s forex reserves dropped by $6.925 billion to $695.355 billion during the week ended October 24, reversing the previous week’s gain of $4.496 billion.
Fiscal Deficit Update
On the macroeconomic front, the Union government’s fiscal deficit stood at 36.5% of the full-year target at the end of the first half of FY26, according to Controller General of Accounts data released on Friday. This compares to 29% of Budget Estimates during the same period in the previous financial year.
