Rupee Rebounds 88 Paise from Record Low Against US Dollar
The Indian rupee staged a strong recovery in early trade on Wednesday, October 15, 2025, climbing 88 paise from its all-time closing low to settle at 87.93 against the US dollar. This rebound was driven by a softer dollar index following signals of additional US Federal Reserve rate cuts, coupled with declining crude oil prices and suspected RBI intervention.
Key Market Movements
- Rupee opened at 88.74, surged to 87.93, then traded at 88.33
- Recovers from Tuesday’s record low close of 88.81
- Domestic equity markets rally with Sensex up 354 points
Fed Policy Drives Currency Shift
Federal Reserve Chair Jerome Powell’s Tuesday comments indicated more rate cuts are likely this year as unemployment rises. However, he also expressed concerns about persistent inflation and warned about risks from tariffs and restrictive immigration policies.
“He also flagged concerns on the stubborn inflation and warned about future risks arising out of tariffs and restrictive immigration policies,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
Global Factors at Play
The dollar index fell 0.20% to 98.85 as markets weighed US-China trade tensions and the ongoing US government shutdown, now in its third week.
“With no economic data from U.S. as the shutdown continues for a third week typically affecting the dollar moves,” Mr. Bhansali added.
Brent crude futures declined 0.43% to $62.12 per barrel, providing additional support to the rupee. Meanwhile, domestic equities surged with the Sensex climbing 354.57 points to 82,384.55 and Nifty gaining 109.55 points to 25,255.05.
Despite the recovery, Foreign Institutional Investors sold equities worth ₹1,508.53 crore on Tuesday, according to exchange data.
