India Rupee Review
Erases most gains as dlr index up, importers buy dollars
This story was originally published at 17:03 IST on 2 September 2025
Register to read our real-time news.By Pratiksha
NEW DELHI – The rupee gave up most of its gains against the dollar Tuesday as importers bought dollars continuosly and the dollar index rose sharply in European trade, dealers said. "A lot of buying (for dollars) came once rupee breached 87.90," a dealer at a state-owned bank said. "Above 88 levels will be tough to sustain for rupee, and we saw that today."
The Indian currency had risen above the 88-per-dollar mark earlier in the day due to optimism over a trade deal between India and the US and foreign banks' dollar sales to trim their long dollar bets and likely foreign fund inflows, dealers said.
After touching a high of 87.8325 a dollar, the Indian unit settled at 88.1550 on Tuesday, against 88.1950 on Monday. Most Asian currencies fell 0.1-0.5% against the dollar, with the Philippine peso being the worst hit. The rupee emerged as the best performer against its peers.
The Indian unit opened slightly higher against the dollar as some traders likely sold dollars in the offshore non-deliverable forwards markets to trim their long dollar bets, noting the Reserve Bank of India's active intervention in the spot market Monday, dealers said. The rupee briefly rose past the key 88-per-dollar mark, an hour into trading, as some banks sold dollars for foreign fund inflows into corporates, some dealers said.
Further, some foreign banks persistently sold dollars, likely to cut their long dollar positions, which also supported the local unit, according to dealers. "There was some long unwinding in the offshore before and spot followed the same sentiment," a dealer at private-sector bank said.
The Indian unit recieved a further boost after Commerce Minister Piyush Goyal said New Delhi and Washington continue to hold negotiations over a bilateral trade agreement. His comments came a day after US President Donald Trump said India has offered to cut its tariffs to nothing but it is getting late. "The US, we are in dialogue with them for bilateral trade agreement," Goyal said Tuesday at the Global Sustainability Summit in Delhi. Following this, some banks' stop-losses were triggered on long dollar bets at around 87.90 a dollar, pushing the rupee higher.
"There has been no positives on the trade deal side in so long. I think some longs (positions) were cut due to that," a dealer at a state-owned bank said. "But that lasted just for a while, and buying (of dollars) came in."
However, banks rushed to buy dollars on behalf of importers, in order to take advantage of the relatively lower dollar/rupee levels, which helped the rupee move below the 88-per-dollar mark again, dealers said. The dollar purchases by importers were aggressive in nature, they said. The Indian unit fell to a record low of 88.3300 on Monday.
The dollar index rose sharply in European trade due to a slump in the pound sterling and Japanese yen. This also weighed on the rupee, some dealers said. At 1530 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was at 98.40, against 97.69 Monday and 97.86 Friday.
Some dealers speculated that in the last leg of trade, some state-owned banks sold dollars around 88.20, possibly on behalf of the central bank, to prevent the local currency from depreciating and hitting a record low.
| AT 1530 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 88.1550 | 88.1450 | 87.8325 | 88.2000 | 88.1950 |
| 1-year dlr/rupee fwd (paise) | 194.82 | 194.32 | 195.39 | 193.76 | 194.24 |
FORWARDS
The one-year dollar/rupee forward premium ended largely steady as market participants remained cautious ahead of a slew of economic data from the US this week, including the July job openings data on Wednesday and the non-farm payrolls report due Friday. The US manufacturing purchasing managers' index and global manufacturing PMI are due later in the day.
Market participants await the key economic data for further cues on the Federal Reserve's rate trajectory. Fed funds futures traders now see an 89.8% probability of the US central bank lowering interest rates by 25 basis points this month, according to the CME FedWatch tool. Forwards of a currency pair are reflective of the interest rate differential between the two countries.
Dealers see 2.25% as a key technical support for the one-year forward premium in the near term. At 1530 IST, the one-year exact period dollar/rupee premium was 2.21%, against its previous close of 2.20%. On an absolute basis, the premium was 194.82 paise, against 194.24 paise Monday.
OUTLOOK
On Wednesday, the rupee will take cues from movement in the dollar index after the release of the US manufacturing purchasing managers' index and global manufacturing PMI, dealers said. Market participants will keep a close eye on developments related to the India-US trade deal talks.
Dealers expect importers to continue buying dollars due to fears that the rupee may depreciate further amid concern about US tariffs on India, dealers said. The Indian currency may continue to be weighed by dollar purchases for foreign portfolio outflows amid the weak risk appetite among investors, they said.
"With FIIs still cautious and maintaining their selling stance, volatility is expected to remain. For the near term, the trading range for the rupee can be seen between 87.85–88.40," Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities, said in a note.
Most dealers expect the central bank to intervene through dollar sales in case the rupee moves toward the 88.30 level. During the day, the rupee may move in a range of 87.90 and 88.30 against the dollar. Dealers peg key technical support for the rupee at 88.30 a dollar.
India Rupee - World FX: Pound sterling slumps on fiscal worries; yen dn 1%
| AT 1500 IST | HIGH | LOW | PREVIOUS | |
| GBP/USD | 1.3393 | 1.3549 | 1.3376 | 1.3542 |
| EUR/USD | 1.1629 | 1.1718 | 1.1624 | 1.1708 |
| NZD/USD | 0.5850 | 0.5908 | 0.5849 | 0.5900 |
| AUD/USD | 0.6506 | 0.6558 | 0.6500 | 0.6552 |
| USD/JPY | 148.6060 | 148.7890 | 147.0530 | 147.1810 |
| USD/CAD | 1.3775 | 1.3784 | 1.3746 | 1.3746 |
| EUR/JPY | 172.8110 | 173.4200 | 172.2850 | 172.3000 |
| CHF/USD | 1.2414 | 1.2501 | 1.2411 | 1.2476 |
| EUR/CHF | 0.9367 | 0.9381 | 0.9356 | 0.9368 |
MUMBAI – The pound sterling slumped 1.2% against the US dollar on increasing concerns about the UK government's finances. Finance Minister Rachel Reeves is expected to raise taxes in her autumn budget later this year, in order to remain on course to meet the country's fiscal targets, potentially adding to the challenge of boosting the UK economy. UK's 30-year borrowing costs also rose to the highest levels since 1998.
The Japanese yen fell 1% against the dollar after Bank of Japan Deputy Governor Ryozo Himino Tuesday said the central bank should keep raising interest rates but warned that global economic uncertainty remains high, suggesting it is in no rush to push up still-low borrowing costs. The Japanese currency was also down as the ruling party's secretary general Hiroshi Moriyama, a close aide to Prime Minister Shigeru Ishiba, said on Tuesday he intends to resign from his post to take responsibility for the party's defeat in the July upper house election.
The euro fell 0.7% against the dollar after European Central Bank policymaker Isabel Schnabel told Reuters that the central bank should keep interest rates steady as the euro zone economy is holding its own in the face of US tariffs and inflation may still rise higher than expected. The ECB is expected to keep interest rates on hold at its next meeting on Sept. 11.
The Australian dollar fell 0.7% against the greenback even after data released Tuesday showed the country's current account deficit in the June quarter was Australian $13.7 billion, down from a revised A$14.1 billion the previous quarter and the forecast of A$16.08 billion. Market participants await Australia's GDP growth data, due Wednesday. The New Zealand dollar fell 0.9% against the dollar while the Swiss franc was down 0.7%.
The dollar index rose sharply, tracking a decline in the pound sterling and yen. Market participants now await a slew of economic data in the US this week, including job openings in July on Wednesday and the non-farm payrolls report on Friday, for more cues on the US rate trajectory.
Fed funds futures traders now see an 89.8% probability of the Fed lowering interest rates by 25 basis points next month, according to the CME FedWatch tool. At 1500 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was at 98.38, against 97.69 Monday and 97.86 Friday. (Rati Chaphekar)
India Rupee: Forward premium steady on caution before multiple US econ data
| AT 1350 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 88.1025 | 88.1450 | 87.8400 | 88.1575 | 88.1950 |
| 1-year dlr/rupee fwd (paise) | 194.32 | 194.32 | 194.89 | 193.76 | 194.24 |
NEW DELHI – The one-year dollar/rupee forward premium was largely steady as market participants remained cautious ahead of a slew of economic data from the US this week, including the July job openings data on Wednesday and the non-farm payrolls report due Friday. The US manufacturing purchasing managers' index and global manufacturing PMI are due later in the day.
"There is not much happening in forwards today. It is pretty quiet," a dealer at a state-owned bank said. "There is a lot of data lined up in US in the second half of the week, so no point taking positions right now. The non-farm payrolls data will be the most looked out."
Market participants await the key economic data for further cues on the Federal Reserve's rate trajectory. Fed funds futures traders now see an 89.8% probability of the US central bank lowering interest rates by 25 basis points this month, according to the CME FedWatch tool. Forwards of a currency pair are reflective of the interest rate differential between the two countries.
Dealers see 2.25% as a key technical support for the one-year forward premium in the near term. At 1350 IST, the one-year exact period dollar/rupee premium was 2.21%, against its previous close of 2.20%. On an absolute basis, the premium was 194.32 paise, against 194.24 paise Monday. (Pratiksha)
India Rupee: Pares gains as importers buy dlrs; India-US trade talk news aid
| AT 1310 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 88.0400 | 88.1450 | 87.8400 | 88.1575 | 88.1950 |
NEW DELHI – The rupee erased some of its earlier gains against the dollar, moving below the 88-per-dollar mark again, as importers stepped in to buy dollars, dealers said. The Indian unit rose above the 88-per-dollar mark earlier in the day, likely due to optimism over a trade deal between India and the US and foreign banks' continuous dollar sales to trim their long dollar bets, dealers said.
Market participants were hopeful of a trade deal between India and the US after Commerce Minister Piyush Goyal said that New Delhi and Washington continue to hold negotiations over a bilateral trade agreement. His comments came a day after US President Donald Trump said India has offered to cut its tariffs to nothing but it is getting late. "The US, we are in dialogue with them for bilateral trade agreement," Goyal said Tuesday at the Global Sustainability Summit in Delhi.
Following this, some banks' stop-losses were triggered on long dollar bets at around 87.90 a dollar, and the rupee rose to a high of 87.8400 a dollar, some dealers said. Moreover, some foreign banks persistently sold the greenback, likely to cut their long dollar positions, noting the Reserve Bank of India's active intervention in the spot market Monday, dealers said. "Most foreign banks had gone heavily long (on dollar). After seeing that the rupee was being held, they cut some of those positions," a dealer at a state-owned bank said.
Importers bought the greenback to make the most of the relatively lower dollar/rupee levels, dealers said. The rupee fell to a record low of 88.3300 a dollar on Monday.
For the rest of the day, the rupee is seen moving in a range of 87.90-88.30 against the greenback. Dealers peg key technical resistance for the rupee at 87.80 a dollar.(Pratiksha)
India Rupee: Technical levels for rupee - Sept 2
NEW DELHI – At 1139 IST, the rupee was at 88.0400 per dollar. At 0900 IST, the rupee was at 88.1450 a dollar, against the previous close of 88.1950. Following are the key support and resistance levels for the rupee as provided by leading banks and brokerages:
| Participants | S2 | S1 | R1 | R2 |
| Private-sector bank | 88.70 | 88.50 | 87.90 | 87.70 |
| Brokerage firm | 88.50 | 88.30 | 87.70 | 87.50 |
| Brokerage firm | 88.50 | 88.30 | 87.90 | 87.80 |
(Pratiksha)
India Rupee: Rises as traders trim long dlr bets in NDF, exporters sell dlrs
| AT 0945 IST | AT 0900 IST | HIGH | LOW | PREVIOUS(AT 1530 IST) | |
| Spot rupee per $1 | 88.0250 | 88.1450 | 88.0100 | 88.1575 | 88.1950 |
NEW DELHI – The rupee rose sharply against the dollar Tuesday as some traders likely sold dollars in the offshore non-deliverable forwards markets to trim their long dollar bets, noting the Reserve Bank of India's active intervention in the spot market Monday, dealers said.
"There was selling (of dollars) in offshore after that last one-hour selling in spot. So, it was like a continuation of that sentiment," a dealer at a state-owned bank said. "I think 88.30 will hold today as well."
Further, some banks stepped in to sell dollars on behalf of exporters who wanted to meet their payment obligations, which also supported the Indian unit, they said. "There were payments lined up but US market was closed, so those payments are going out today. So we are seeing selling because of that," a dealer at another state-owned bank said. "But I don't think this will sustain. We will be back to the same range." Financial markets in the US were closed on Monday for Labour Day.
Dealers, however, expect the rupee to face downward pressure during the day as importers may step in to buy dollars, noting the relatively lower dollar/rupee levels. Market participants now await a slew of economic data in the US this week, including the July job openings data on Wednesday and the non-farm payrolls report on Friday, for more cues on the US rate trajectory. At 0945 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was at 97.84, against 97.69 Monday and 97.86 Friday.
Sentiment among investors remained jittery as US President Donald Trump on Monday fired a fresh salvo agaisnt India, calling its trade with New Delhi so far a "totally one-sided disaster". He said India has now offered to remove tariffs on imports from the US but should have done so "years ago".
For the rest of the day, the rupee is seen moving in a range of 87.90-88.30 against the greenback. Dealers peg key technical resistance for the rupee at 88.00 a dollar.(Pratiksha)
India Rupee - Asia FX: Mixed, South Korean won up despite CPI at 9-month low
MUMBAI – Asian currencies moved on a mixed note against the dollar Tuesday as market participants awaited a slew of economic data from the US this week, including the July job openings data on Wednesday and the non-farm payrolls report on Friday. The US manufacturing purchasing managers' index and global manufacturing PMI are due Tuesday.
Market participants await the key economic data for further cues on the Federal Reserve's rate trajectory. Fed funds futures traders now see an 87.6% probability of the Fed lowering interest rates by 25 basis points this month, according to the CME FedWatch tool. At 0915 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was at 97.83, against 97.69 Monday and 97.86 Friday.
The South Korean won rose 0.1% against the dollar even after data released Tuesday showed inflation slowed to a nine-month low in August. The consumer price index rose 1.7% in August on year, after rising 2.1% in July, much weaker than a 2.0% rise forecast in a Reuters poll. The data led to expectations of a rate cut by Bank of Korea in October. The Philippine peso fell 0.1% against the greenback.
The Malaysian ringgit fell 0.1% against dollar ahead of Bank Negara Malaysia's monetary policy committee meeting Thursday, where it is expected to maintain the overnight policy rate at 2.75%..
The Indonesian rupiah was broadly steady, after falling sharply last week due to dampened risk sentiment among investors amid ongoing protests against housing allowance for members of Parliament, that is almost 10 times the Jakarta minimum wage. Indonesia's central bank annnounced Monday that it would make necessary intervention in the currency market to keep the rupiah stable against the greenback.
The Thai baht rose 0.1% against the greenback despite ongoing political instabilities in the country. Thailand's Constitutional Court dismissed Prime Minister Paetongtarn Shinawatra Friday for an ethics violation. The Taiwan dollar traded steady against the greenback. (Rati Chaphekar)
India Rupee: Expected range for rupee - Sept 2
NEW DELHI – Following are the expected support and resistance levels for the rupee on Tuesday, as forecast by leading banks and brokerages in an Informist poll:
| PARTICIPANT | SUPPORT | RESISTANCE |
| State-owned bank | 88.30 | 87.90 |
| Private-sector bank | 88.50 | 87.90 |
| Private-sector bank | 88.40 | 88.00 |
| Private-sector bank | 88.30 | 87.90 |
| Foreign bank | 88.35 | 87.80 |
| Brokerage firm | 88.40 | 88.00 |
| Brokerage firm | 88.33 | 87.92 |
(Pratiksha)
End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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