The Indian rupee gained on Monday, August 18, 2025 and gained 23 paisa to close (provisional) at 87.36 against the U.S. dollar. The main reasons given to explain this increase were healthy local stocks and cash upbeat about the economy reforms. Forex dealers observed that the bullish trading was sparked by the positive mood in the market following the statements made by Prime Minister Narendra Modi during his Independence Day speech on August 15, indicating future GST reforms which will ease the tax burden and renew business confidence.
The rupee was opened at 87.46 per dollar at the interbank foreign exchange market. It traded between the day’s low of 87.48 and 87.33 during the day and finally closed at 87.36, which was a decent 23 paise up move on its last close of 87.59 seen on Thursday. Significantly, during the Friday holiday, when forex and equity markets were closed, the MBS market did not show a softening.
Market analysts highlighted that although the domestic equity power and policy cheer aided the rupee, there are still warning bells about global trade volatility, as far as the tariff-related tensions between India and the United States are concerned. Traders remain alert on the talks that have continued on tariffs, which may affect the inflow of foreign capital and confidence by investors.
In the equity market, Indian stock markets reported solid buying across the sectors adding more strength to the local currency. Analysts think that inflows of foreign institutional investors into equities and bonds will be of large importance, which will maintain the strength of the rupee in the short run.
In general, the increase of the rupee is an indication of domestic strength and policy-led optimism despite the global headwinds. In the future, currency trends will remain affected by events in India-U.S. trade negotiations, market indicators globally and capital inflows.
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