Indian rupee gains over 0.5% against US dollar

Business Sep 18, 2025

The Indian rupee just had its strongest day in nearly a month, closing at 87.8150 per US dollar on Wednesday.
It even crossed the 88-mark for the first time in almost three weeks, thanks to a weaker US dollar and some optimism around India-US trade talks.

Gains may be capped due to demand for dollars

A softer US dollar (with traders expecting possible Fed rate cuts) gave the rupee room to climb, and positive signals from ongoing India-US trade negotiations added more momentum.
Still, Dilip Parmar from HDFC Securities notes that gains may be capped due to demand for dollars from importers.
Everyone's now watching for comments from US Fed Chair Jerome Powell and updates that could shake up global currency trends again soon.