Forex traders said upbeat market sentiment, driven by expectations of a trade deal and easing crude oil prices, boosted investor confidence, even as importer demand for dollars limited sharper gains. Investors also remained cautious ahead of the upcoming US Federal Open Market Committee (FOMC) meeting
At the interbank foreign exchange market, the rupee opened at 88.21 and traded in a range of 88.15 to 88.35 during the day. Representational pic
The rupee appreciated by eight paise to close at 88.21 (provisional) against the US dollar on Wednesday, supported by strong domestic markets and optimism over a potential trade deal between India and the US, news agency PTI reported.
Forex traders said upbeat market sentiment, driven by expectations of a trade deal and easing crude oil prices, boosted investor confidence, even as importer demand for dollars limited sharper gains. Investors also remained cautious ahead of the upcoming US Federal Open Market Committee (FOMC) meeting.
At the interbank foreign exchange market, the rupee opened at 88.21 and traded in a range of 88.15 to 88.35 during the day, PTI reported. The local unit finally settled at 88.21 (provisional), registering a gain of eight paise from its previous close. On Tuesday, the rupee had slipped 10 paise to 88.29 against the US dollar.
“We expect the rupee to trade with a slight positive bias on positive domestic markets and weak crude oil prices. Upbeat market sentiment over trade deal optimism may further support the rupee,” said Anuj Choudhary, research analyst, currency and commodities, Mirae Asset ShareKhan.
US President Donald Trump recently said, “I'm doing a trade deal with India.”
Month-end demand for dollars from importers may cap sharp gains, PTI reported. The USDINR spot rate is expected to trade in a range of 87.85 to 88.60, Choudhary added.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.21 per cent to 98.87. Brent crude, the global oil benchmark, gained 0.22 per cent to USD 65.54 per barrel in futures trading.
On the domestic equity front, the Sensex climbed 368.97 points to settle at 84,997.13, while the Nifty gained 117.70 points to 26,053.90. Foreign Institutional Investors (FIIs) purchased equities worth Rs 10,339.80 crore on Tuesday, according to exchange data.
Meanwhile, India’s industrial production growth remained steady at 4 per cent in September 2025, driven by strong performance in the manufacturing sector, buoyed by GST rationalisation and festive demand. Factory output, measured by the Index of Industrial Production (IIP), expanded by 3.2 per cent in September 2024, according to official data released on Tuesday.
(With PTI inputs)
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