Particle.news
Download on the App Store

Rupee Closes at 90.05 to the Dollar as Oil and Outflows Keep Pressure On

Traders cite sustained importer demand alongside uncertainty over IndiaUS trade talks.

Overview

  • The currency ended at 90.05 after touching an intraday low of 90.26, slipping from Friday’s 89.95 close.
  • Forex participants pointed to elevated crude prices, persistent foreign portfolio outflows, and steady corporate demand for dollars as key drags.
  • The RBI has cut the repo rate to 5.25% and announced a $5 billion three-year dollar–rupee swap auction for December 16.
  • Governor Sanjay Malhotra said the central bank does not target a specific rupee band, reiterating that markets determine the exchange rate.
  • Investors are watching the Fed’s December 9–10 policy decision, with a rate cut widely expected, and three-day IndiaUS trade talks starting December 10.