Rupee rises 6 paise to close at 88.20 against U.S. dollar
Forex traders said, likely intervention of the RBI has helped in controlling volatility and preventing a quick depreciation of the local unit.
The rupee witnessed range-bound trading and settled higher by 6 paise at 88.20 (provisional) against the U.S. dollar on Monday (September 15, 2025), as the domestic unit was caught between worries over U.S. trade tariffs and hopes of a FED rate cut.
On Friday, the rupee recovered from all-time lows and settled higher by 9 paise at 88.26 against the U.S. dollar.
Investors are closely monitoring geopolitical developments, and global trade dynamics will be critical for the local unit going forward.
Market attention has now shifted to what the U.S. FED will do on September 17, with expectations of a rate cut creating uncertainty around the dollar’s future strength, forex traders said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07% to 97.48.
Brent crude, the global oil benchmark, was trading 0.40% higher at $67.26 per barrel in futures trade.
On the domestic equity market front, Sensex declined 118.96 points to settle at 81,785.74, while the Nifty dropped 44.80 points to 25,069.20.
Meanwhile, U.S. Commerce Secretary Howard Lutnick asserted that New Delhi must bring down its tariffs or face a “tough time” doing business with the U.S.
Mr. Lutnick made the comments during an interview on Saturday when he was asked whether the U.S. is mismanaging “very valuable relationships” with “important allies” like India, Canada and Brazil with the tariffs imposed on these countries.
“The relationship is one way, they sell to us and take advantage of us. They block us from their economy, and they sell to us while we are wide open for them to come in (and) take advantage,” Mr. Lutnick said.
Why is the Rupee’s Value Important?
The value of the Rupee affects almost everyone in India. A weaker Rupee means that goods and services imported from other countries become more expensive, which can lead to higher inflation. On the other hand, a stronger Rupee helps keep prices stable, which benefits both consumers and businesses.
In recent years, the Rupee has experienced fluctuations, which has caused some concerns. A steady currency is essential for economic growth, and many investors watch these movements closely.
How the RBI Helps Stabilize the Rupee
The RBI has several tools to keep the Rupee’s value in check. One way is by directly buying or selling U.S. Dollars in the foreign exchange market. By doing so, the RBI can either increase or decrease the supply of Dollars, which impacts the Rupee’s value.
When the Rupee faces downward pressure and starts to weaken too quickly, the RBI might decide to sell some of its Dollar reserves, providing support to the Rupee and preventing it from falling further.
Looking Ahead
While the recent rise in the Rupee is a positive sign, the forex market is still unpredictable. Economic factors, global events, and market sentiment will continue to play a role in shaping the Rupee’s future. However, the intervention by the RBI shows that the central bank is actively working to manage the currency’s value and avoid sharp fluctuations.
As always, staying informed about these changes is essential for businesses and individuals who rely on foreign trade or travel.