Rupee extends winning streak despite rising oil prices; opens at 87.79/$

Indian Rupee today: The domestic currency opened five paise higher at 87.79 against the greenback on Friday

The Indian Rupee continued to gain, shrugging off soaring oil prices, with investors awaiting the delayed consumer inflation data in the US.  

 

The domestic currency opened five paise higher at 87.79 against the greenback on Friday, according to Bloomberg. The currency fell 2.56 per cent so far this year. 

 

The Reserve Bank of India (RBI) intervened on Thursday to keep the rupee below the 88.00 level, with the currency closing at 87.84 amid optimism over a potential US-India trade deal, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said.

 

The Dollar Index remained strong, while most Asian currencies showed slight gains. Bhansali sees 88.00 as near-term resistance and 87.60 as support, with small inflows and intra-day outflows contributing to two-way movement. Rising oil prices, up over $5, have added to the mixed global sentiment, he said.

 

   

"This week's key event will be the US CPI data, which could influence dollar movement and, in turn, rupee volatility. The rupee now holds strong support at 87.65, while resistance is seen near 88.1," Jateen Trivedi, VP Research Analyst - commodity and currency, LKP Securities, said. 

 

The dollar index edged higher on Friday as Donald Trump and Xi Jinping plan to meet next week on the sidelines of the Asia-Pacific Economic Cooperation summit. The measure of the greenback against a basket of six major currencies was up 0.09 per cent at 99.02.

 

In commodities, crude oil prices traded slightly lower after the prices spiked by more than 5 per cent on Thursday on US sanctions over two Russian Oil companies. Brent crude price was down 0.47 per cent at 65.68 per barrel, while WTI crude prices were lower by 0.53 per cent at 61.46 per barrel, as of 9:08 AM 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.

 

Meanwhile, the RBI did not purchase dollars for the second consecutive month amid pressure on the rupee. The Reserve Bank of India (RBI) sold $7.6 billion in August, compared with $2.5 billion in July.