Rupee drops for 3rd day to end at 88.74; likely RBI interventions cap fall

Indian Rupee today: The domestic currency closed 8 paise lower at 88.74 against the greenback on Friday

The Indian Rupee traded weak for the third straight session on Friday amid reports that the central bank intervened in the market as the currency traded near record lows.  

 

The domestic currency closed 8 paise lower at 88.74 against the greenback on Friday, according to Bloomberg. The Rupee has risen 0.05 per cent this month, while it has fallen 3.65 per cent this year, amongst the worst-performing Asian currencies. 

 

During the session, the currency fell to 88.75 against the dollar. The Reserve Bank of India (RBI) intermittently sold dollars in the offshore non-deliverable forwards market on Friday, Bloomberg reported, quoting people familiar with the development. 

 

With talk of a possible rate cut gaining a bit of ground, the rupee failed to gain some strength, even as the global backdrop looked supportive, according to Amit Pabari, managing director at CR Forex Advisors. 

 

Moody’s Ratings said on Thursday that India’s economy is expected to grow by around 6.5 per cent through 2027. The agency kept its forecast for gross domestic product (GDP) growth at 6.4 per cent in 2026 and 6.5 per cent in 2027.  India’s growth will continue to be strong because of heavy investment in infrastructure, rising consumer spending, and diversified exports, even though private companies are still cautious about spending, it said. 

 

This resilience improves sentiment toward India and could attract more foreign inflows, a supportive factor for the rupee in the medium term, even if short-term pressure continues, Pabari said. The resistance remains near 88.80–89.00, he said, adding that, if the pair breaks below 88.40, it may open the door toward 87.70–88.00, signalling further rupee strength. 

 

The US dollar index eased to its lowest level in nearly two weeks, after US President Donald Trump approved a deal to reopen the government after a record shutdown. The measure of the greenback against a basket of six major currencies was up 0.12 per cent at 99.27.

 

In commodities, crude oil prices rose despite the concerns of oversupply still influencing the market, analysts said. Brent crude price was up 1.51 per cent at 64.00 per barrel, while WTI crude prices were higher by 1.77 per cent at 59.73 per barrel, as of 3:30 PM IST.