Indian Rupee Range-Bound

2025-11-07 04:07 By Joshua Ferrer 1 min. read

The Indian rupee traded around 88.6 per dollar, moving in a tight range as the Reserve Bank continued its regular interventions to curb excessive volatility.

The central bank’s defense of the 88.80 level has helped steady sentiment so far, highlighting the currency’s reliance on policy support amid weak capital flows, persistent dollar demand, and external headwinds.

The rupee has come under pressure since steep US tariffs on Indian exports were imposed in late August, while slow progress in trade talks added to the drag.

Recent positioning and renewed RBI dollar sales via state-run banks suggest authorities are relying on familiar tools to limit sharp moves in either direction.

However, analysts warned that prolonged intervention could discourage longer-term foreign inflows.

On the policy front, most market participants still expect a December rate cut by the RBI, with some forecasting further easing in February to bring the repo rate to 5% amid a benign inflation outlook.



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