Overview
- The rupee closed at 88.75 on November 3 after touching 88.80 intraday, marking a third straight decline and staying near its all-time closing low of 88.81 set in October.
- Dealers report the RBI sold dollars through state-run banks in recent sessions to keep the currency from breaching the 88.8050 record, with actions smaller than October’s heavy sales, and the governor reiterates no specific level is targeted.
- Hawkish signals from the US Federal Reserve, firmer crude prices, and equity selling by foreign institutions of Rs 6,769.34 crore on Friday are weighing on the currency.
- India’s foreign exchange reserves fell by USD 6.925 billion to USD 695.355 billion in the week ended October 24, narrowing the cushion for intervention.
- Traders expect 10-year yields to stay around 6.50%–6.60% as rate-cut bets are pared, and Goldman Sachs says the rupee could gain 1–2% if US tariffs on Indian goods remain at or below 25%.