The rupee depreciated 12 paise to 87.95 against the U.S. dollar in early trade on Monday (October 27, 2025), weighed down by rising crude oil prices supported by optimism over a potential U.S.-China deal.

Forex traders said the rally in crude oil prices was driven by the potential U.S.-China trade deal, which supports expectations for a stronger global oil demand.

At the interbank foreign exchange market, the rupee opened at 87.87, and slipped to 87.95 against the greenback, registering a fall of 12 paise from its previous close.

On Friday (October 24, 2025), the rupee appreciated 5 paise to close at 87.83 against the U.S. dollar.

“For now, the rupee seems to be walking a tightrope between caution and hope. If it manages to break below 87.50, it could find room to appreciate toward 86.80–87 in the near term. On the other hand, resistance stands around 88.30–88.40,” CR Forex Advisors MD – Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.04% to 98.91.

Brent crude, the global oil benchmark, rose 0.02% to ₹65.95 per barrel in futures trading.

The US sanctions against Russia continue, with traders continuing to watch developments around trade negotiations and geopolitical events as these remain key for energy market sentiment and ongoing price trajectory, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.

On the domestic equity markets front, Sensex climbed 272.7 points to 84,484.58 in early trade, while the Nifty was up 88.55 points to 25,883.70.

Foreign Institutional Investors purchased equities worth ₹621.51 crore on Friday (October 24, 2025), according to exchange data.

Meanwhile, India’s forex reserves increased by $4.496 billion to $702.28 billion during the week ended October 17, as the value of gold reserves rose further, the RBI said on Friday.

In the previous week, the overall reserves had jumped by $2.176 billion to $697.784 billion.