Rupee trades flat amid easing US-China trade tensions; opens at 87.84/$

Indian Rupee today: The domestic currency opened one paise lower at 87.86 against the greenback on Monday, according to Bloomberg

The Indian Rupee traded flat on Monday as gains from a weaker dollar index were offset by higher crude oil prices amid optimism over a potential China-US trade deal.

 

The domestic currency opened one paise lower at 87.86 against the greenback on Monday, according to Bloomberg. So far this month, the currency has risen 1 per cent, while it has fallen 2.64 per cent this year. The currency has outperformed Asian peers, due to Reserve Bank of India (RBI) interventions and optimism of a trade deal with the US. 

 

The dollar gained slightly on Friday as oil companies purchased the currency in lower volumes, analysts said. Asian currencies remained range-bound to slightly stronger against the dollar. 

 

 

For intra-day hedging, exporters are expected to sell near 87.95 levels, while importers may look to buy around 87.60, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "For further hedging, importers may consider waiting for the rupee to appreciate towards 87.00 levels, as a trade deal with the U.S. is finalised."

 

The rupee’s range for the near term is expected between 87.45 and 88.15, with a slightly positive bias, Jateen Trivedi, VP research analyst - Commodity and Currency, LKP Securities, said. 

 

The rupee now seems fairly valued, and we may see a bout of appreciation towards 87.30 if the trade deal gets sealed with the US, Bloomberg reported IFA Global analysts. 

 

Meanwhile, trade talks between the US and China in Malaysia ended positively ahead of Thursday’s meeting between Donald Trump and Xi Jinping later this week, reports said. US Treasury Secretary Scott Bessent told CBS that Trump’s threat of 100 per cent tariffs is “effectively off the table”. 

 

The dollar index traded slightly lower with economic data releases, including CPI data and September Job figures, delayed amid the government shutdown. The measure of the greenback against a basket of six major currencies was down 0.05 per cent at 98.90.

 

Crude oil prices edged higher and traded at their highest in two weeks amid a potential US-China Trade deal. Brent crude price was up 0.33 per cent at 66.16 per barrel, while WTI crude prices were higher by 0.37 per cent at 61.73 per barrel, as of 9:00 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