Overview
- The rupee extended losses for a third session on Monday, touching an intraday 88.80 before settling at 88.77 per dollar, just shy of its record low.
- Traders reported the RBI sold dollars in smaller sizes via state-run banks and in forwards, helping slow the slide without a decisive break of 88.80.
- Recent RBI data showed forex reserves fell by USD 6.925 billion to USD 695.355 billion in the week to October 24 as foreign investors continued selling equities.
- Market pressure reflected a firm dollar, higher crude and uncertainty over the Fed’s path and US-India tariff outcomes, even as Indian government bonds drew about USD 1 billion in net inflows in October.
- Goldman Sachs said the rupee could appreciate 1–2% if US tariffs on Indian goods stay at or below 25% and recommended option structures expressing a bullish INR view.