Overview
- The rupee closed at 88.77 to the dollar on Monday after touching 88.80 intraday, marking a third straight decline and hovering at its all-time low zone.
- Traders reported state-run banks sold dollars near 88.80 on behalf of the RBI, while data show the central bank boosted short dollar forwards by about $6 billion in September, with a net short of $59.4 billion.
- The dollar index hovered around 100 as markets pared the probability of a December Fed cut to roughly 65–70 percent, keeping pressure on emerging-market currencies.
- India’s foreign exchange reserves fell $6.925 billion to $695.355 billion in the week ended Oct. 24, reflecting intervention and portfolio outflows.
- India’s 10-year bond yield held near 6.53 percent and is seen contained in the 6.50–6.60 percent band, while Goldman Sachs said the rupee could appreciate 1–2 percent if U.S. tariffs on Indian goods are capped at 25 percent.