In early trading on Wednesday, the rupee recovered its early losses and gained 2 paise to 89.20 against the US dollar, following a weak US dollar and positive sentiment in the domestic share market. Forex traders claim that, despite the Indian currency being under pressure due to increased crude oil prices, there was a foreign capital influx into domestic stock markets.
The rupee opened at 89.24 on the interbank foreign exchange market, dropped to 89.26, and then recovered to trade at 89.20 versus the US dollar in early trades, up 2 paise from its closing level. On Tuesday, the rupee fell 6 paise versus the US dollar to 89.22.
The dollar index, which measures how strong the US dollar is in relation to a basket of six currencies, dropped by 0.02 percent to 99.56. In futures trading, Brent crude, the world’s benchmark for oil, increased by 0.40 percent to USD 62.70 per barrel.
To maintain the rupee, the RBI has sold $23.5 billion in the spot Forex market thus far in FY26 (April–September 2025). The central bank often uses its foreign exchange reserves to fund its spot market interventions.
Thus far this year, the rupee has lost 4.10 percent of its value in the calendar year and 4.26 percent in the fiscal year. After the Indonesian rupiah, which has lost 3.36 percent of its value, and the Philippine peso, which has lost 1.73 percent, the rupee has performed the worst this year.
