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Rupee Slides to Near Lows, Closes Around 90.8 per Dollar After Third Straight Drop

Expiring offshore NDF contracts concentrated dollar demand that outweighed RBI efforts to steady the currency.

Overview

  • The rupee ended Friday near 90.78–90.86 to the US dollar after a 44–63 paise fall on the day, hovering close to December’s record levels.
  • Persistent foreign institutional investor equity outflows and a firmer greenback following recent US inflation and activity data added pressure.
  • Traders cited nearly $3 billion in maturing non-deliverable forwards that intensified dollar buying and deepened the intraday slide.
  • State-run banks were reported to have sold dollars on behalf of the RBI to limit losses, with softer crude prices and rising equities offering additional support.
  • Analysts see a negative bias for the rupee with downside risk toward the 91 level if outflows, NDF-driven demand and a strong dollar continue.