The Crossbill News Desk
The Indian rupee continued its downward slide on Monday (November 3), marking its third consecutive session of losses and closing seven paise lower at 88.77 (provisional) against the US dollar — hovering near its all-time low.
The decline came amid persistent strength in the greenback and sustained foreign fund outflows, although late-session intervention by the Reserve Bank of India (RBI) and positive domestic equities helped limit deeper losses, PTI reported.
At the interbank foreign exchange market, the rupee opened at 88.73 and slipped to an intraday low of 88.80 before settling at 88.77 (provisional), down seven paise from its previous close of 88.70 on Friday.
The currency had dropped sharply by 47 paise on Thursday following hawkish remarks from US Federal Reserve Chair Jerome Powell, despite the Fed’s 25-basis-point rate cut. The rupee had earlier hit its lowest-ever closing level of 88.81 against the dollar on October 14.
"The Indian rupee drifted toward a record low on Monday, dragged down by regional currency weakness and dollar outflows. Although the central bank intervened mid-session to offer some cushioning, strong dollar demand ultimately prevailed, pushing the rupee pair to a session low before it settled with a small loss," Dilip Parmar, Senior Research Analyst at HDFC Securities told PTI.
Parmar added that near-term technical charts show support at 88.55 and resistance at 89.25.
The dollar index, which measures the greenback's strength against a basket of six major currencies, rose 0.16 per cent to 99.96. Meanwhile, Brent crude futures climbed 0.22 per cent to USD 64.87 per barrel.
On the domestic front, equity markets ended marginally higher, with the Sensex rising 39.78 points or 0.05 per cent to 83,978.49, and the Nifty gaining 41.25 points or 0.16 per cent to close at 25,763.35. However, FIIs offloaded equities worth Rs 1,883.78 crore on Monday, according to exchange data.
A monthly survey released Monday indicated strengthening momentum in India’s manufacturing sector in October, driven by Goods and Services Tax (GST) relief measures, productivity gains, and higher tech investments, even as export demand grew at a slower pace.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose from 57.7 in September to 59.2 in October, signaling robust expansion in the sector.
Meanwhile, India’s foreign exchange reserves fell by USD 6.925 billion to USD 695.355 billion for the week ended October 24, according to RBI data released on Friday.
The decline came amid persistent strength in the greenback and sustained foreign fund outflows, although late-session intervention by the Reserve Bank of India (RBI) and positive domestic equities helped limit deeper losses, PTI reported.
At the interbank foreign exchange market, the rupee opened at 88.73 and slipped to an intraday low of 88.80 before settling at 88.77 (provisional), down seven paise from its previous close of 88.70 on Friday.
The currency had dropped sharply by 47 paise on Thursday following hawkish remarks from US Federal Reserve Chair Jerome Powell, despite the Fed’s 25-basis-point rate cut. The rupee had earlier hit its lowest-ever closing level of 88.81 against the dollar on October 14.
"The Indian rupee drifted toward a record low on Monday, dragged down by regional currency weakness and dollar outflows. Although the central bank intervened mid-session to offer some cushioning, strong dollar demand ultimately prevailed, pushing the rupee pair to a session low before it settled with a small loss," Dilip Parmar, Senior Research Analyst at HDFC Securities told PTI.
Parmar added that near-term technical charts show support at 88.55 and resistance at 89.25.
The dollar index, which measures the greenback's strength against a basket of six major currencies, rose 0.16 per cent to 99.96. Meanwhile, Brent crude futures climbed 0.22 per cent to USD 64.87 per barrel.
On the domestic front, equity markets ended marginally higher, with the Sensex rising 39.78 points or 0.05 per cent to 83,978.49, and the Nifty gaining 41.25 points or 0.16 per cent to close at 25,763.35. However, FIIs offloaded equities worth Rs 1,883.78 crore on Monday, according to exchange data.
A monthly survey released Monday indicated strengthening momentum in India’s manufacturing sector in October, driven by Goods and Services Tax (GST) relief measures, productivity gains, and higher tech investments, even as export demand grew at a slower pace.
The seasonally adjusted HSBC India Manufacturing Purchasing Managers’ Index (PMI) rose from 57.7 in September to 59.2 in October, signaling robust expansion in the sector.
Meanwhile, India’s foreign exchange reserves fell by USD 6.925 billion to USD 695.355 billion for the week ended October 24, according to RBI data released on Friday.
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