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2h ago

Rupee Closes at Record Low of 88.79 After Brief Early Rebound

Heavy foreign selling, along with U.S. trade measures, kept pressure on the currency ahead of Wednesday’s RBI decision.

Rupee | Image: Shutterstock

Overview

  • The rupee settled at 88.79 to the dollar, a provisional all‑time closing low, after opening firmer at 88.69.
  • An early lift from a broader Asia FX rally faded through the session despite U.S. PCE inflation matching forecasts at 0.3% in August.
  • Foreign investors sold Indian equities worth Rs 5,687.58 crore on Friday, with NSDL data also showing a net $462.5 million share sale on September 25.
  • India’s foreign exchange reserves fell by $396 million to $702.57 billion for the week ended September 19, and traders expect the RBI to smooth volatility near 88.80.
  • Market commentary cites U.S. tariffs and higher H‑1B visa fees as additional headwinds for the rupee, with the RBI’s October 1 policy outcome seen as a key near‑term driver.