Rupee advances to near 3-week high on trade deal hopes; opens at 88.57/$

Indian Rupee today: The domestic currency opened 4 paise higher at 88.57 against the greenback and rose to 88.53 in opening deals

The Indian Rupee strengthened to a nearly three-week high on Thursday amid optimism over a potential trade deal, even as the dollar moved higher.

 

The domestic currency opened 4 paise higher at 88.57 against the greenback on Wednesday and rose to 88.53 in opening deals, according to Bloomberg. The Rupee has risen 0.25 per cent this month, while it has fallen 3.55 per cent this year, amongst the worst-performing Asian currencies. 

 

The rupee spent Tuesday stuck in a familiar zone, almost like a ship anchored between two tides, according to Amit Pabari, managing director at CR Forex Advisors. "On one side stood the rising dollar and firm crude oil prices; on the other, a fresh wave of optimism around the India-US trade pact." 

 

FIIs may be trimming their equity exposure, but the overall picture isn’t entirely negative, Pabrari said. So while equities face outflows, bond inflows are helping balance the pressure and providing an important cushion for the rupee, he said. 

 

The currency continues to move in a narrow band, facing firm resistance at 88.80-89.00 and finding initial support near 88.40, Pabari said. The tilt is slowly turning in favour of the rupee, he said, adding that a clear break below 88.40 could open the path toward 88.00-87.70, signalling further rupee strength.

 

The Rupee has been recovering gradually, though the pace remains slow and has yet to translate into meaningful gains in the currency pair, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. Markets continue to watch developments on the India-US trade deal, he said. 

 

Meanwhile, India’s chances of entering the Bloomberg Global Aggregate Index have strengthened after large foreign portfolio investors (FPIs) gave positive feedback on the country’s bond market operations, with an official announcement expected as early as January 2026, according to a Business Standard report. 

 

Sentiment remains broadly positive for the Rupee, with foreign portfolio investors viewing 88.60 as an attractive entry level, Bhansali said. "For the day, the Rupee is expected to remain range-bound with a mild gain of 5-10 paise. Exporters are likely to continue selling, while importers may look to buy on dips to meet near-term payment obligations."

 

The dollar index traded higher as the odds of a rate cut in December continued to fade. All eyes are locked on Thursday’s official US jobs report, the one that could set the tone for the Federal Reserve’s next move, analysts said. The measure of the greenback against a basket of six major currencies was up 0.05 per cent at 99.59.

 

In commodities, crude oil prices edged lower amid concerns about global oil oversupply. Brent crude price was down 0.34 per cent at 64.67 per barrel, while WTI crude prices were lower by 0.26 per cent at 60.57 per barrel, as of 9:08 AM IST.