Rupee closes at fresh low for second straight session; ends at 88.79/$

Indian Rupee today: The domestic currency opened four paise lower at 88.79 on Tuesday against the greenback

The Indian Rupee ended at a fresh closing low for the second consecutive session on Tuesday amid Monetary Policy Committee (MPC) continuing deliberations on its key interest rate decision.

 

The domestic currency opened four paise lower at 88.79 on Tuesday against the greenback, according to Bloomberg. The currency fell 3.71 per cent so far this year, while it hit an all-time low of 88.80 during the session. 

 

Foreign portfolio investors (FPIs) remain net sellers, pressuring equities, while the absence of progress on the Indo-US trade treaty has kept markets cautious ahead of the RBI policy outcome tomorrow, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. 

  

The MPC is expected to maintain the status quo at its October meeting, scheduled for September 29-October 1, according to a Business Standard poll. The domestic rate-setting panel kept the repo rate unchanged in August, following a 50-basis-point (bp) cut in June. Earlier, the panel had reduced the rate by 25 bps each in February and April after holding it steady for 11 consecutive meetings.   

 

Meanwhile, government bond yields rose on Monday due to the Centre’s increased borrowings through the 10-year bond in the October-March borrowing plan. 

 

The dollar index was trading lower as traders reacted to concerns about a possible US government shutdown from October 1. The measure of the greenback against a basket of six major currencies was down 0.14 per cent at 97.76.

 

In commodities, crude oil prices fell after US President Donald Trump and his Israeli counterpart Benjamin Netanyahu agreed to a 20-point plan to end the war in Gaza. Brent crude price was down 1.07 per cent at 67.24 per barrel, while WTI crude prices were lower by 1.12 per cent at 62.74 per barrel, as of 3:35 PM IST.