The rupee remained stable within a narrow range and concluded the day with a decline of 7 paise, reaching its all-time closing low of 88.79 (provisional) against the U.S. dollar on Monday, September 29, 2025. This was attributed to ongoing foreign capital outflows and an increase in risk-off sentiments. Forex traders noted that the rupee is lingering near its historical low as investors express concerns regarding global trade uncertainties and the repercussions of the U.S. visa fee increase on India’s IT services exports. Furthermore, the outcome of the Reserve Bank of India (RBI) policy meeting scheduled for October 1 is anticipated to impact both the rupee and government bond movements. In the interbank foreign exchange market, the rupee commenced trading at 88.69 against the U.S. dollar and ultimately settled for the day with a loss of 7 paise at 88.79 (provisional), marking its lowest closing level to date. On the preceding Friday, the rupee recovered from its all-time low, closing 4 paise higher at 88.72 against the U.S. dollar. The rupee reached a new lifetime low of 88.76 against the American currency on Thursday, September 25. The Reserve Bank’s Monetary Policy Committee commenced its three-day discussions amid expectations of maintaining the current key interest rate; however, some analysts speculate that the central bank may opt for a 25 basis points reduction. The decision from the six-member rate-setting panel, led by RBI Governor Sanjay Malhotra, is set to be announced on Wednesday, September 24. This meeting is occurring in the context of ongoing geopolitical tensions and the U.S. imposing 50% tariffs on Indian exports.
In the meantime, the dollar index, which measures the strength of the greenback against a basket of six currencies, was trading at 97.96, reflecting a decrease of 0.19%.Brent crude, the global oil benchmark, was trading 1.37% lower at $69.17 per barrel in futures trading. In the domestic equity market, the Sensex fell by 61.52 points to close at 80,364.94, while Nifty decreased by 19.80 points to 24,634.90.Foreign Institutional Investors sold equities worth ₹5,687.58 crore on Friday, September 26, according to data from the exchange.Meanwhile, the US has announced the imposition of a 100% tariff on branded or patented drugs entering the U.S. from October 1, except for pharmaceutical companies building manufacturing plants in the U.S.
