Overview

• The rupee traded around 88.78 per dollar on Tuesday, staying just below the 88.80 record low last hit on September 30.
• Traders cited frequent RBI support, including reported short-dollar positions in the NDF market of at least $15 billion, with state-run banks intermittently offering dollars.
• Renewed U.S.-China trade tensions, portfolio outflows, stronger importer demand and a record-setting gold rally are keeping depreciation pressures in place.
• India’s 10-year benchmark yield hovered near 6.54%, with dealers expecting a 6.49%–6.55% range this week as supply and inflation prints guide moves.
• Economists polled by Reuters see September CPI around 1.70%, and Governor Sanjay Malhotra’s comments on policy space have reinforced market bets on an RBI rate cut in December.