Indian Rupee Weakens from 2-Month High

2025-10-27 15:53 By Andre Joaquim 1 min. read

The Indian rupee weakened to 88.2 per USD from the two-month high of 87.7 from October 22nd as the Reserve Bank of India eased its rupee defense in a backdrop of strong dollar demand.

State banks accepted expensive dollar bids as high energy prices and the outlook of a dovish RBI continued to support forex demand from domestic markets.

The softer grip on the rupee contrasted with the rebound from the record low of 88.7 repeatedly tested through October.

Demand for hard currency persisted as refineries executives stated they would stop purchasing cheaper Russian oil due to recent sanctions on the sector by the US.

Not only does this force India to purchase more expensive oil, but global energy prices rose sharply on the event to magnify the outflows of currency from the G20's fastest growing economy.

Still, reports indicated that the US could limit Indian tariffs to 15%-16% should the country significantly limit the purchase of Russian energy, limiting the pressure on the rupee.



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