Rupee ends slightly lower as traders turn focus to Fed; ends at 88.26/$

Indian Rupee today: the domestic currency closed 2 paise lower at 88.26 against the greenback on Tuesday

The Indian Rupee reversed early losses on Tuesday to end slightly weaker amid a decline in crude oil prices and a dip in the dollar index. 

 

After opening 9 paise lower at 88.33, the domestic currency closed 2 paise lower at 88.26 against the greenback on Tuesday, according to Bloomberg. So far this year, the currency has fallen by 3.12 per cent. 

 

For now, the market seems to be balancing between short-term pressure and medium-term optimism, Amit Pabari, managing director at CR Forex Advisors, said earlier "The rupee is expected to find strong resistance near 88.40, while support lies around 87.60–87.70. A break below that zone could open the door for a move toward 87.20."

 

   

The dollar index traded lower ahead of the Donald Trump and Xi Jinping meeting later this week. The measure of the greenback against a basket of six major currencies was down 0.10 per cent at 98.68. The Federal Reserve will gather to decide policy on Oct. 28-29, when markets expect it to lower rates by another quarter point, according to Bloomberg. 

 

The ongoing US government shutdown has restricted key data releases, but the broader view remains clear, Pabari said, adding that a softer Fed stance continues to weigh on the dollar, subtly favouring emerging-market currencies like the rupee.

 

Further, the influx of foreign participation in the coming months in the primary market could bring fresh equity inflows, helping to offset external dollar demand and lend a measure of stability to the rupee, Pabari said.

 

In commodities, crude oil prices were trading lower as investors weighed on impact of US sanctions on Russian producers. Brent crude price was down 1.80 per cent at 64.44 per barrel, while WTI crude prices were higher by 1.78 per cent at 60.18 per barrel, as of 3:45 PM IST.   

As of September 2025, the real effective exchange rate (REER) of the Indian rupee fell further to 97.6, from 98.8 in August. REER adjusts the nominal effective exchange rate to account for inflation differentials between India and its major trading partners