September 16, 2025

The Indian rupee enjoyed a tasty little rise on Tuesday, September 16, 2025, jumping 8 paise to close at 88.08 against the US dollar. What’s pushing the rupee up? The big story is ongoing US-India trade talks trying to fix issues left by the tough Trump-era tariffs. These talks are building hope for exporters facing a bumpy ride. Forex traders say the home currency got stronger because of good vibes in India’s markets and a weaker US dollar. The greenback is chilling at a two-month low just before the two-day FOMC meeting that started on Tuesday. Also, some bad US economic data added to the dollar’s troubles. During the day, the rupee opened at 88.05, dipped a little to 88.16, but bounced back to hit a high of 88.01. It finally settled at 88.08, a nice gain of 8 paise from Monday’s close of 88.16. On Monday itself, the rupee had already gained 10 paise. Anuj Choudhary, a research analyst from Mirae Asset ShareKhan, sums it up: “We expect the rupee to remain strong on broad weakness in the U.S. Dollar amid disappointing economic data coming from the U.S. and weak labour market, which has raised expectations of a rate cut by the Fed.” He added that markets expect a 25-basis-points rate cut. Investors are eagerly waiting for Fed Chair's speech for clues on what’s next: “A dovish commentary may lead to further decline in the greenback while a hawkish tone may lead to a pullback.” Traders will also keep an eye on US retail sales and industrial production reports. Until then, the USD/INR spot price is expected to swing between 87.75 and 88.30. On the US dollar front, the dollar index—which measures its strength against six key currencies—fell 0.26% to 97.04. Meanwhile, Brent crude oil prices slid 0.28%, trading at $67.25 per barrel. Back home, the Indian stock market was dancing happily. The Sensex jumped nearly 595 points to 82,380.69, and the Nifty climbed 170 points to 25,239.10. Despite this, Foreign Institutional Investors sold equities worth ₹1,268.59 crore on Monday. In the world of diplomacy, chief negotiators from India and the US met to smooth out trade wrinkles left by high tariffs. Brendan Lynch leads the American team, while Rajesh Agrawal heads the Indian side, showing both sides are serious about fixing the trade puzzles.

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Tags: Rupee, Us dollar, Trade talks, Fomc meeting, Trump tariffs, Indian economy,