Overview
- The currency closed at 89.22 per dollar on Tuesday after rebounding on Monday, recovering roughly half a rupee from Friday’s all‑time closing low near 89.66.
- Dealers reported RBI dollar selling on the NDF platform before market open and in spot trades, keeping USD/INR largely within the 89.00–89.30 band.
- Pressure stems from strong dollar demand, FII equity outflows, and a record October goods trade deficit near $41–42 billion driven by a surge in gold imports and weaker exports.
- Analysts see risks skewed toward a test of 90 without a clear catalyst such as a favorable India–US trade deal, even as reserves near $692.6 billion provide a buffer and the RBI remains focused on curbing volatility.
- The RBI has been a net seller of dollars this year (about $21.7 billion in H1) with short forward positions around $59 billion in September, and the rupee’s slide has drawn criticism from the Congress, which recalled Narendra Modi’s 2013 remarks on the currency.