INR extends downside near record lows amid dollar strength abroad

The Indian rupee extended its descent for the third straight day and settled five paise down at 88.75 (provisional) against the US dollar on Monday, near its all-time low level, weighed down by a strong American currency and foreign fund outflows. The dollar index continues to add strength near a three month high as Fed Chair Jerome Powell hinted that it may be the central bank's last reduction for the year, citing the risk of making additional moves without a more robust picture of the economy. DXY quoted at 99.71 today. Domestic equities, however, ended on a positive note and supported the domestic unit at lower levels. Shares ended little changed on Monday after a choppy session. Caution prevailed ahead of a big week for earnings, with around 200 prominent companies scheduled to report their quarterly earnings results. The benchmark BSE Sensex swung between gains and losses before ending the session up 39.78 points, or 0.05 percent, at 83,978.49. The broader NSE Nifty index edged up by 41.25 points, or 0.16 percent, to 25,763.35 after a strong rally in October. At the interbank foreign exchange, the rupee opened at 88.73 and touched an intraday low of 88.80 against the greenback.

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