Rupee Strengthens 14 Paise to 86.93 Against US Dollar Amid Positive Market Sentiment

On Aug 21, 2025, the Indian rupee appreciated by 14 paise to reach 86.93 against the US dollar in early trade, supported by firm domestic equities and improved global risk appetite.

According to forex traders, the rupee showed a positive bias driven by increased risk-on sentiment in global markets, spurred by renewed hopes of a peaceful resolution to the ongoing Russia-Ukraine conflict.

At the interbank foreign exchange market, the rupee opened at 87.04 and quickly climbed to an early high of 86.93, marking a 14 paise gain from its previous close. On Wednesday (August 20), it had closed higher at 87.07 per US dollar. The US dollar remained steady, with the dollar index, measuring the greenback against a basket of six major currencies, rising slightly by 0.08% to 98.30.

Foreign Institutional Investors (FIIs) turned net sellers on Wednesday, offloading Indian equities worth ₹1,100.09 crore, as per exchange data.

India and China: Diplomatic Development

In a key diplomatic development, India and China reached a fresh understanding on managing and controlling their border areas during Chinese Foreign Minister Wang Yi’s recent visit to New Delhi, the Chinese foreign ministry announced. Wang, who visited on August 18–19, held in-depth discussions with National Security Advisor Ajit Doval and External Affairs Minister S. Jaishankar.

Also Read: Crude Oil Prices Rise on Aug 21 Further in Asia Amid Supply Concerns 

Crude Oil Prices Trade Higher

On the commodities front, Brent crude futures were trading 0.37% higher at $67.09 per barrel, amid optimism over peace talks in Eastern Europe, a larger-than-expected drawdown in US crude inventories, and continued sanctions on Russian energy exports.

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