India-US trade talks Rupee opens stronger below 88 after 2 weeks?

The rupee started stronger on September 17, rising 23 paise to open at 87.82 against the US dollar, compared to its previous close of 88.05. This marks the currency’s first opening below the 88 mark in two weeks, buoyed by the revival of trade talks between India and the United States, according to currency experts.

Despite the positive start, sentiment remains cautious as investors await the outcome of the US Federal Reserve’s policy meeting. A softer dollar globally has been supporting the rupee, but the Fed’s upcoming rate decision, expected late tonight in India, will be a key trigger for future moves.Minister Narendra Modi and US President Donald Trump, aimed at easing trade tensions. Trump, in a social media post on Tuesday, described the call as “wonderful" and also wished Modi a happy birthday. Meanwhile, chief negotiators from both countries continued discussions in New Delhi on the proposed bilateral trade agreement (BTA).The rupee, however, traded a bit softer, with recent volatility linked to broader dollar weakness and developments in India-US trade talks, said Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. “Market mood remains cautious, with investors closely tracking the Federal Reserve’s policy meeting, as dollar softness globally is supporting rupee strength," he noted.

Bhansali added that the rupee is likely to stay volatile in the near term, supported by a weaker dollar and the RBI’s stance, though medium-term risks remain due to external pressures and policy uncertainties. “Importers can look to buy on dips, while exporters may hold off on selling," he advised.