Indian Rupee Hits Record Closing Low Amid Weakness in Asian Markets

Equity inflows related to MSCI index rebalancing may offer some support in the coming week, while investors await U.S. inflation data.

The Indian rupee ended at a record closing low on Friday, weighed down by weakness in its Asian peers and dollar demand from foreign banks.
The rupee hovered in a narrow range of 83.3450 to 83.38 during the day's session and fell 0.1% this week.
Foreign banks were seen bidding for U.S. dollars on Friday, likely on behalf of custodial clients.
Equity inflows worth about $1.5 billion related to the rebalancing of MSCI index, effective from Nov. 30, may offer some support the rupee in the coming week.
Investors await the release of October inflation data in the U.S. on Thursday.