Ahead of the US Fed's rate decision this week, the Indian rupee opens one paise higher at 88.26/USD.

Ahead of a widely anticipated interest rate drop at the US Federal Reserve's policy meeting this week, the Indian rupee began one paise higher against the US dollar on September 15 at 88.2612. According to market participants, the Reserve Bank of India has been stepping in to ease the rupee's decline, guarantee a smooth transition, and prevent a more severe selloff. According to a dealer with a state-run institution cited by Reuters, "the RBI's likely presence is helping to contain the pressure and prevent a bigger shakeout." The euro barely responded to Fitch's downgrading of France's credit rating, while the dollar remained stable ahead of a crucial week full of central bank announcements headed by the Federal Reserve. Compared to the previous close of 97.550, the dollar index was trading at 97.628 in the morning. On September 17, the US Fed is anticipated to drop interest rates in response to Trump's drive for lower borrowing costs, sticky inflation, and a sluggish labor market. For months, Trump has been pressuring Fed Chair Jerome Powell to lower interest rates and has called for his resignation on several occasions. According to a Bloomberg survey of analysts, the median prediction is for a rate cut of 25 basis points. According to Bloomberg News, President Donald Trump called for a "big cut" by the Federal Reserve ahead of a crucial meeting this week where the governors of the central bank are anticipated to loosen policy for the first time in nine months. Trump told reporters on his way back to Washington on Sunday, "I think you have a big cut." "It's excellent for cutting." The Indian rupee opened slightly higher at 88.26 against the US dollar on September 15, helped by the Reserve Bank of India’s likely intervention in the forex market. Dealers suggested that the RBI has been stepping in to control volatility, limit the rupee’s decline, and prevent a sharper selloff. This intervention has provided a cushion for the currency at a time when global markets are awaiting key central bank announcements. In global trade, the dollar index remained steady at 97.628, compared to its previous close of 97.550. The euro, meanwhile, showed little reaction to Fitch’s downgrade of France’s credit rating, with investors largely shrugging off the development. Market sentiment remained cautious as traders focused on the upcoming decisions from major central banks, particularly the US Federal Reserve. The Fed’s policy meeting on September 17 is expected to bring the first interest rate cut in nine months, with most analysts predicting a 25 basis point reduction. The move comes in response to persistent inflation, signs of weakness in the labor market, and mounting political pressure. For months, US President Donald Trump has been urging the Fed to lower borrowing costs and has been critical of Fed Chair Jerome Powell for resisting deeper cuts.