Rupee appreciated to close at 87.975 per US dollar on October 17 (Friday) against previous Friday’s close of 88.6850 amid weakness in the dollar, softer crude oil prices and hopes of a positive outcome from the US-India tariff talks.
The rupee, which gained 71 paise last week, may get further support on potential inflows of $3 billion from the proposed acquisition of up to 60 per cent stake in RBL Bank by Emirates NBD and the possibility of the dollar weakening amid increasing possibility of a rate cut by the US Fed.
The Indian currency appreciated to close at 87.975 per US dollar on October 17 (Friday) against previous Friday’s close of 88.6850 amid weakness in the dollar, softer crude oil prices and hopes of a positive outcome from the US-India tariff talks.
Referring to the potential inflows of $3 billion, the treasury head of a public sector bank observed that in anticipation of the inflows, market players will start shorting (the dollar), leading to strengthening of the rupee. So, the rupee may strengthen 25-30 paise on Monday.
Madan Sabnavis, Chief Economist, Bank of Baroda, observed that the rupee has been volatile and there was a time when it was expected that it could go past the ₹89/$ mark. There have been significant corrections subsequently, with the rupee now moving in a range lower than the ₹88 mark.
“Given the developments on the tariff front are still filled with uncertainty, the rupee will remain in the range of 87.75-88.50/$ for the rest of the month,” he said.
Riya Singh, Research Analyst, Commodities and Currency, Emkay Global Financial Services, observed that the rupee staged a sharp rebound last week after the Reserve Bank of India (RBI) stepped up its intervention to counter what it perceived as speculative pressure on the currency.
“The RBI actively sold dollars in both onshore and offshore markets after the rupee neared the 89-per-dollar mark, a level viewed as a critical threshold.
She emphasised that the central bank is determined to prevent a breach of the record low of 88.8050 and has sufficient reserves—around $700 billion—to defend the currency.
“The RBI is expected to continue intervening until speculative positions unwind completely. For now, the rupee may trade sideways amid upcoming holidays, but sustained foreign inflows and progress on trade talks could help it strengthen further in the coming weeks,” Singh said.
Published on October 19, 2025
