Mumbai, Sep 29: Mumbai’s rupee settled lower by 3 paise at 88.75 against the US dollar on September 29, attributed to continuous foreign capital outflows and rising risk-off sentiments among investors.
The rupee is near its all-time low due to concerns surrounding global trade uncertainties and the effects of the US visa fee hike on India’s IT export sector.
The rupee opened at 88.69 and traded between 88.69 and 88.81 before closing at 88.75, reflecting a decline from its previous close at 88.72.
Analysts expect that the upcoming Reserve Bank of India (RBI) policy meeting may significantly influence the rupee and government bond movements.
Research analysts predict that the rupee may remain under pressure due to weak domestic markets, high crude oil prices, and month-end dollar demand from importers.
Despite this, weakening in the US dollar and potential RBI interventions could provide some support.
The spot USD/INR pair is forecasted to encounter critical support at 88.25 and key resistance at 89.10.
The RBI’s Monetary Policy Committee commenced deliberations, with expectations of maintaining the current interest rate, although some experts anticipate a possible 25 basis points cut.
This occurs amidst geopolitical tensions and the US imposing a 50% tariff on Indian shipments.
In the latest market movements, the dollar index dropped to 97.96, and Brent crude futures decreased by 1.37% to USD 69.17 per barrel.
The domestic equity market faced declines, with the Sensex falling by 61.52 points and the Nifty by 19.80 points.
Additionally, foreign institutional investors divested equities worth ₹2,831.59 crore on the same day.
Lastly, RBI data revealed a drop of USD 396 million in India’s forex reserves, totaling USD 702.57 billion for the week ending September 19. (PTI)
