Rupee Rises 3 Paise to 88.63 After Early Dip

Overview

• The currency reversed an early slide to close at 88.63 per dollar after trading between 88.56 and 88.73 through the session.
• Traders cited likely portfolio flows into equities and dollar sales by foreign banks, while importer demand and recent FII outflows constrained gains.
• The dollar index hovered near 99.3–99.5 as hawkish Federal Reserve signals kept the odds of a December rate cut below roughly 44%.
• Firm domestic equities and softer Brent crude prices helped limit pressure on the rupee.
• Fresh trade data showed October exports down 11.8% to USD 34.38 billion and imports up 16.63% to USD 76.06 billion, widening the deficit to USD 41.68 billion.