Overview
- The currency settled at 88.70 per dollar on Oct. 31 after an early uptick, following a 47-paise drop to 88.69 on Oct. 30 that took it as weak as about 88.74 intraday.
- The Federal Reserve cut rates by 25 bps, but Chair Jerome Powell said a December cut was not a foregone conclusion, lifting US yields and the dollar.
- RBI data showed foreign exchange reserves fell by $6.92 billion to $695.36 billion for the week ended Oct. 24, reducing a near-term buffer.
- Foreign investors were net sellers, offloading Rs 3,077.59 crore on Thursday and Rs 6,769.34 crore on Friday, while month-end importer demand added pressure.
- The rupee is trading close to its September record low of 88.8050, and analysts warn a break could point toward 89.5–90 as the RBI reiterates it intervenes to maintain orderly markets.