Rupee rises 21 paise to 87.75 against U.S. dollar in early trade

The rupee rose 21 paise to 87.75 against the US dollar in early trade on Friday (October 17, 2025), supported by a softer US currency against major currencies and possible intervention by the Reserve Bank of India.

Forex traders said fresh foreign fund inflows and lower crude oil prices further boosted investor sentiment.

At the interbank foreign exchange market, the rupee opened at 87.91 and then strengthened and touched an early high of 87.75 against the US dollar, registering a gain of 21 paise from its previous close.

The rupee appreciated by 12 paise to close at 87.96 against the US dollar on Thursday (October 16, 2025), registering gains for the second consecutive session.

“After weeks of floating in uncertain waters, the currency has now found a tailwind – boosted by a soft US dollar, returning investor confidence and the steady hand of the Reserve Bank,” said Amit Pabari, MD, CR Forex Advisors.

Pabari further said that a break below 87.50 could open the way towards 86.80-87.00, indicating further appreciation. On the other hand, 88.30-88.40 acts as a strong resistance zone.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.16 percent lower at 98.17.

“After weeks of outflows, the return of foreign funds is more than just a number – it signals new confidence in India’s growth story and stability. When capital starts flowing back, currencies often move in the same direction,” Pabari said.

Meanwhile, Commerce and Industry Minister Piyush Goyal has said that India has implemented several free trade agreements with developed countries and is in active talks for such agreements with countries including the US, Oman and the EU.

“We have signed free trade agreements (FTAs) with many developed countries in the last three years… We are in active talks with the US, EU, Chile, Peru, New Zealand and Oman,” the minister told reporters here.

“This clearly shows that India is a preferred and preferred destination for both investment and bilateral trade,” he said.