Rupee Slips to 88.69 Amid Dollar Strength, Oil Surge

The Indian rupee slipped 4 paise to 88.69 against the U.S. dollar in early trade on Monday, weighed down by a firm dollar in global markets and rising crude oil prices.

Forex traders noted that global uncertainty continues to weigh on the rupee, while the ongoing U.S. government shutdown has unexpectedly bolstered the greenback. With government spending halted, fewer dollars are circulating abroad, tightening supply and offering short-term support to the currency.

The rupee opened at 88.64 and gradually declined to 88.69, extending last week’s modest losses. On Friday, the currency had slipped 2 paise to 88.65. Market analysts observe a visible “line in the sand” at the 88.80 mark, with resistance forming near 88.80–89.00 and support around 88.40.

Despite short-term pressures, the medium-term outlook for the rupee remains positive. A sustained move below 88.40 could trigger further gains toward the 88.00–87.70 zone, according to market watchers.

The dollar index, which tracks the U.S. currency against a basket of six global currencies, inched up 0.08% to 99.68, reflecting continued caution among investors amid the Fed’s measured approach and uncertainty surrounding the shutdown.

Crude oil prices also added pressure on the rupee, with Brent crude climbing 0.66% to $64.05 per barrel in futures trading.

In domestic markets, Indian equities maintained a positive tone. The BSE Sensex rose 202.48 points to 83,418.76, while the Nifty 50 gained 68.65 points to 25,560.95 in early trading. Foreign institutional investors contributed to the rally by buying equities worth ₹4,581.34 crore on Friday.

Meanwhile, India’s forex reserves saw a drop of $5.623 billion to $689.733 billion for the week ending October 31, marking a continued decline from the previous week’s $695.355 billion.

Overall, the rupee’s movement reflects a delicate balance between external pressures from a strong dollar and oil prices, and internal support from India’s resilient economic fundamentals and sustained investor interest.