Finance
The Indian rupee fell for the third consecutive session on Friday, with rumors suggesting that the central bank intervened in the market as the currency approached historic lows.
According to Bloomberg, the native currency closed 8 paise weaker at 88.74 against the dollar on Friday. The rupee has climbed 0.05 percent this month but has plummeted 3.65 percent this year, making it one of the worst-performing Asian currencies.
During the session, the currency decreased to 88.75 per dollar. Bloomberg reported that the Reserve Bank of India (RBI) intermittently sold dollars in the offshore non-deliverable futures market on Friday, citing people familiar with the matter.
With speculation of a likely rate decrease gathering traction, the rupee struggled to gain strength, even if the global backdrop appeared positive, according to Amit Pabari, managing director of CR Forex Advisors.
According to Moody’s Ratings, India’s economy is predicted to increase by approximately 6.5 percent through 2027. The agency maintained its prediction for GDP growth at 6.4% in 2026 and 6.5% in 2027. India’s growth would remain strong due to massive investment in infrastructure, increased consumer spending, and diverse exports, even though private enterprises are still hesitant about spending, the report stated.
This resiliency boosts attitude toward India and may attract more foreign inflows, a positive factor for the rupee in the medium term, even if short-term pressure persists, Pabari added. The barrier remains near 88.80-89.00, he said, adding that if the pair falls below 88.40, it might open the door to 87.70-88.00, indicating additional rupee gain.
The US dollar index fell to its lowest level in over two weeks after US President Donald Trump signed an agreement to reopen the government after a record closure. The dollar index against a basket of six major currencies rose 0.12% to 99.27.
Crude oil prices climbed despite ongoing concerns about oversupply in the market, according to analysts. Brent crude prices were up 1.51% at 64.00 per barrel, while WTI crude prices were up 1.77 percent at 59.73 per barrel as of 3:30 PM IST.
Source: BS
