The rupee closed at 87.975 per US dollar on October 17 (Friday), compared to last Friday’s close of 88.6850, amid dollar weakness, softer crude oil prices and hopes of a positive outcome from US-India tariff talks.
The rupee, which gained 71 paise last week, could get further support on potential inflows of $3 billion from Emirates NBD’s proposed acquisition of up to 60 percent stake in RBL Bank and the possibility of dollar weakening amid the growing 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), compared to last Friday’s close of 88.6850, reflecting dollar weakness, softer crude oil prices and hopes of a positive outcome from US-India tariff talks.
Referring to the potential inflows of $3 billion, the treasury head of a public sector bank noted that market players will short the dollar in anticipation of the inflows, leading to a strengthening of the rupee. So, the rupee may rise by 25-30 paise on Monday.
Bank of Baroda Chief Economist Madan Sabnavis noted that the rupee has been volatile and there was a time when it was expected to cross the ₹89/$ mark. There have been significant corrections thereafter, with the rupee now moving in a range lower than the ₹88 mark.
“As developments on the rate front are still full of 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 currencies at Emkay Global Financial Services, noted that the rupee staged a sharp recovery last week after the Reserve Bank of India (RBI) stepped up its intervention to counter what it viewed as speculative pressure on the currency.
“The RBI actively sold dollars in both onshore and offshore markets after the rupee approached the 89 per dollar mark, a level considered a critical threshold.
She stressed that the central bank is determined to prevent a breach of the record low of 88.8050 and has sufficient reserves – about $700 billion – to defend the currency.
“It is expected that the RBI will continue to intervene until speculative positions are completely settled. For now, the rupee may trade sideways during the upcoming festive season, but continued foreign inflows and progress in trade talks could see the rupee strengthen further in the coming weeks,” Singh said.
Published on October 19, 2025
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