October 7, 2025

Hold on to your wallets, folks! The Indian rupee took a tiny tumble on Tuesday, October 7, 2025, slipping 1 paisa to 88.75 against the mighty US dollar. The day started a bit hopeful, with the rupee opening stronger at 88.72, but soon it lost ground. Experts blame a super-strong American dollar and the uneasy air around the India-US trade deal. Traders say the Indian currency is under pressure because foreign money keeps flowing out, plus some tense geopolitical developments. On October 6, the rupee had actually gained 5 paise, settling at 88.74, so this dip comes after a small jump. The US dollar flexed its muscles, with the dollar index climbing to 97.86, up 0.06%. Even global oil prices edged up, with Brent crude futures trading at $65.69 a barrel, marking a 0.34% rise. Meanwhile, India’s External Affairs Minister S Jaishankar made it clear that any trade deal must respect India’s "red lines." He said, "there were 'issues' between India and the US," highlighting that firming up the trade deal has hit some roadblocks. But he also noted, "there are things you can negotiate and there are things you can't." So, the talks are ongoing with careful balancing. Back home, the domestic stock market showed some sparkle. The Sensex jumped 93.83 points, gaining 0.11% to 81,883.95 at the start of trading. The Nifty also rose 46.35 points, up 0.18% to hit 25,124.00. However, the big foreign investors were cautious, selling shares worth Rs 313.77 crore on Monday. Adding flavor to this financial picture, India’s service sector cooled down a bit in September. After a sizzling 15-year high in August, the HSBC India Services PMI Business Activity Index dipped to 60.9 in September, showing slower new business and activity growth. The slowdown is due to tougher market competition and companies tightening their spending. So, what’s the final story? Indian markets are dancing to the tunes of a strong dollar, cautious investors, and delicate trade talks. Will the rupee regain its sparkle? Only time will tell, as India and the US work out their differences with some spicy negotiations ahead!

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Tags: Indian rupee, Us dollar, India-us trade deal, Foreign capital outflow, Hsbc services pmi, Stock market,