The rupee depreciated 16 paise to 88.01 against the U.S. dollar in early trade on Thursday (September 18, 2025), as traders assessed the US FED outlook following a rate cut.

The US FED reduced rates by a quarter point as expected and indicated that it will steadily lower borrowing costs for the rest of the year.

At the interbank foreign exchange market, the rupee opened at 87.93, then lost ground and touched an early low of 88.01 against the U.S. dollar, registering a decline of 16 paise over its previous close.

On Wednesday, the rupee appreciated 24 paise to close at 87.85 against U.S. dollar.

India's exports likely to grow 6% this year: Piyush Goyal

"Expect a range-bound movement in the pair on Thursday after the passing over of a major event while we await for the outcome of U.S.-India trade tariffs meeting. Thursday's opening is a tad weaker after a rise in the U.S. Dollar index and a fall in Asian currencies," said Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.17% to 97.03.

Brent crude, the global oil benchmark, was trading 0.12% lower at $67.87 per barrel in futures trade. On the domestic equity market front, Sensex rallied 447.5 points to 83,141.21 in early trade, while the Nifty climbed 118.7 points to 25,448.95.

Foreign Institutional Investors sold equities worth ₹1,124.54 crore on a net basis on Wednesday, according to exchange data.

Meanwhile, Union Commerce Minister Piyush Goyal on Wednesday expressed confidence that India's exports would grow by around 6% this year compared to the corresponding period in 2024.

Underscoring the country's strong performance in global trade despite challenges, the Minister said discussions on free trade agreements (FTAs) were advancing with several countries.

"India's exports would grow by around 6% this year compared to the corresponding period last year. I believe we will end the year on a positive note," Mr. Goyal told reporters here, adding that discussions on free trade agreements (FTAs) were advancing with several countries.

Rupee falls 16 paise to 88.01 against U.S. dollar in early trade