The Indian rupee plunged 43 paise to close at a near two-week low of 88.26 (provisional) against the US dollar on Monday, as broad strength in crude oil prices and month-end dollar demand from importers weighed on investor sentiment. Rally in crude oil prices was driven by a potential US-China trade deal, which supports expectations for a stronger global oil demand. At the interbank foreign exchange, the rupee opened at 87.87 against the greenback and fell to an intra-day low of 88.31 and a high of 87.86. It finally closed the day at 88.26 (provisional) against the greenback, down 43 paise from its previous close. Meanwhile, Indian shares rose notably on Monday as softer-than-expected U.S. inflation report raised hopes of additional Federal Reserve rate cuts in 2025 and reports suggested that the United States and China were closing in on a trade deal. India's economic growth outlook for the current fiscal year remains strong, supported by robust domestic demand, easing inflation and recent consumption tax cuts, the Finance Ministry said in its September economic report. The benchmark BSE Sensex ended the session up 566.96 points, or 0.67 percent, at 84,778.84, with most sectoral indexes advancing. The broader NSE Nifty index surged 170.90 points, or 0.66 percent, to 25,966.05.

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