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Rupee Closes at 88.66 to the Dollar After Late Rebound

A tight trading band signaled importer demand countered by equity gains plus RBI efforts to curb swings.

Overview

  • The rupee ended at 88.66 per USD, a 4‑paise gain on the day, after recovering from an intraday low of 88.75.
  • Late-session strength followed a rebound in domestic equities, with reports also pointing to supportive sentiment from the ruling alliance’s mandate in Bihar.
  • Recurring headwinds persisted from foreign fund outflows and continuous dollar buying by importers, including oil companies.
  • Analysts cited RBI dollar sales in the onshore market to limit volatility, as official data showed forex reserves fell $2.7 billion to $687.73 billion for the week ended Nov 7.
  • Globally, the dollar index softened near 99.11 as markets awaited delayed U.S. data following the government reopening, while Pakistan reported a $22 million rise in SBP reserves and higher local gold prices.