The Rupee recovered from all-time lows and settled for the day higher by seven paise at 88.28 (provisional) against the U.S. dollar on Friday (September 12, 2025), on weakness in the U.S. dollar index and positive domestic markets.

Forex traders said the domestic unit traded in a tight range and hovered around its all-time low level as tariff-led pressure on India’s exports and sustained foreign fund outflows dented investors sentiments.

India killed U.S. with tariffs, now offers ‘no tariffs’: Trump

At the interbank foreign exchange, the domestic unit opened at 88.39 and fell to an intraday low of 88.42 against the U.S. dollar during the session. The domestic unit settled for the day at 88.28 (provisional), recovering seven paise over its previous close.

On Thursday (September 11, 2025), the Rupee slumped 24 paise and closed for the day at an all-time low of 88.35 against the U.S. dollar. It had also touched the lowest-ever intraday level of 88.49 against the greenback.

“We expect the Rupee to trade with a slight positive bias on overall weakness in the U.S. dollar and rise in risk appetite in global markets on rising odds of a rate cut by Fed in its upcoming FOMC meeting next week,” said Anuj Choudhary, Research Analyst, Currency and commodities, Mirae Asset ShareKhan.

“Markets now expect a 75 bps rate cut in 2025. However, FII outflows and uncertainty over trade tariff issues between India and the U.S. may cap sharp upside,” Mr. Choudhary said, adding that traders may take cues from University of Michigan consumer sentiment data from the U.S. “The USD-INR spot price is expected to trade in a range of 88 to 88.50,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.22% to 97.74. Brent crude, the global oil benchmark, was trading 0.65% higher at $66.80 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 355.97 points to settle at 81,904.70, while the Nifty climbed 108.50 points to 25,114. Foreign Institutional Investors offloaded equities worth ₹3,472.37 crore on Thursday (September 11, 2025), according to exchange data.

Meanwhile, Commerce and Industry Minister Piysuh Goyal on Thursday (September 11, 2025) said that negotiations between India and the U.S. on the proposed trade agreement, which began in March, are progressing in a positive atmosphere and both the countries are satisfied with the progress.

These remarks follow the announcement by U.S. President Donald Trump that there will be “no difficulty” for the two countries to come to a successful conclusion in trade talks and he looks forward to speaking with his “very good friend” Prime Minister Narendra Modi in the coming weeks.