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Rupee Weakens Against Dollar after Fed Rate Cut Move

Business

Business Honor
18 September, 2025

Rupee weakens after Fed rate cut; Indian exports expected to grow 6% amid global shifts.

On Thursday at September 18, 2025, the Indian rupee is reduced by 16 paise with an opening at 87.93 and falling to 88.01 against the U.S. dollar in early trade. This drop came after the U.S. Federal Reserve cut interest rates by 0.25%, as expected. The Fed also signaled it may continue lowering rates gradually throughout the year.

The day before, the rupee had supported by 24 paise to close at 87.85. However, Thursday saw renewed pressure due to a rise in the U.S. dollar index and weaker performance of Asian currencies. Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP have said the rupee and dollar pair is likely to trade within a range as traders now wait for the outcome of U.S and India trade tariff discussions.

At 97.03, the U.S. dollar index, which compares the dollar to six major currencies, has increased by 0.17%. In the meantime, the price of Brent crude oil dropped by 0.12% to $67.87 per barrel. The Nifty increased by 118.7 points to 25,448.95 in early trading on the Indian stock market, while the Sensex gained 447.5 points to reach 83,141.21.However, the stock exchange data shows that on Wednesday that Indian shares valued at ₹1,124.54 crore were sold by Foreign Institutional Investors (FIIs).

According to a statement made by federal Commerce Minister Piyush Goyal on Wednesday, India's exports are predicted to increase by about 6% this year over the same period last year. He went on to say that the nation is still doing well in international trade and those discussions for Free Trade Agreements (FTA) with a number of nations that are moving forward. Despite global challenges, Goyal expressed confidence that India would end the year with robust export growth.