Rupee posts marginal advance on mixed cues; rises to 88.12/$ in early trade

Indian Rupee today: The domestic currency opened flat but rose to 4 paise to 88.12 against the dollar on Wednesday

The Indian Rupee traded slightly higher on Wednesday, even as US President Donald Trump ruled out lowering tariffs on Indian imports.

 

The domestic currency opened flat but rose to 4 paise to 88.12 against the dollar on Wednesday, according to Bloomberg. In the previous session, the rupee rose to 87.83 on bond inflows, but slipped to 88.21 before closing at 88.15. 

 

So far this year, the rupee has depreciated 2.89 per cent, making it the worst performer among Asian peers.

 

The currency opened flat today, though dollar buying may weigh, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. Sumitomo Mitsui Banking Corporation's (SMBC) $1.6 billion share purchase approval could bring inflows, keeping the rupee in the 87.80–88.30 range, with RBI’s stance at 88.30 in focus, he said.

   

On the trade front, Trump says that he is not looking at lowering tariffs on India. "We get along with India very well," Trump said at a White House event, but criticised the imbalanced trade relationship because of high Indian levies.  

 

Foreign portfolio investors (FPIs) continue to pare holdings in both equities and debt, amid concerns that India’s trade deficit could widen following the Trump administration's 50 per cent tariff on Indian goods, among the steepest globally. So far this year, FPIs sold equities worth ₹1.4 trillion, according to NSDL data.  

 

With FIIs still cautious and maintaining their selling stance, volatility is expected to remain, according to Jateen Trivedi, VP research analyst - commodity and currency at LKP Securities. "For the near term, the trading range for the rupee can be seen between 87.85 - 88.40."

 

India’s gross domestic product (GDP) grew 7.8 per cent in the first quarter (April-June) of the financial year 2025-26 (FY26), hitting a five-quarter high.  The manufacturing purchasing managers index (PMI) touched a nearly 18-year high of 59.3 in August.

 

The focus is on two key releases, the August jobs report and the inflation print, both due before the September 16–17 US Federal Reserve's policy meeting. The dollar index, a measure of the greenback against a basket of six major currencies, was up 0.10 per cent at 98.49. 

 

In commodities, crude oil prices gave up the previous session's gains ahead of the Opec+ meeting over the weekend. Brent crude price was down 0.35 per cent at 68.90 per barrel, while WTI crude prices were lower by 0.32 per cent at 65.38 per barrel, as of 9:18 AM IST.