Overview
- The currency briefly hit 88.36 per dollar on Friday before paring losses, with dealers citing likely Reserve Bank of India action framed as volatility management rather than defending a level.
- A Reuters poll and bank reports point to a near-term 87.5–88.5 range, while a sizable minority of strategists warn of slippage toward 89–90 if steep U.S. tariffs persist.
- Foreign investors have withdrawn about $1.4 billion from equities in September, taking year-to-date outflows beyond $16 billion, even as RBI retains sizeable reserves near $690 billion.
- Exporters are lobbying for temporary relief, including a special conversion rate around 103 per dollar for U.S. earnings, while policy voices debate tolerating gradual depreciation to support competitiveness.
- Finance Minister Nirmala Sitharaman said the rupee is largely stable against most currencies; a weaker rate lifts remittance values but raises import costs and inflation risks for oil and input-heavy sectors.