Rupee ends lower after flat start; closes near record low at 88.78/$

Indian Rupee today: The domestic currency closed nine paise lower at 88.78 against the greenback

The Indian Rupee ended lower near the record low mark on Friday as concerns of foreign outflow weighed on sentiments after the Reserve Bank of India (RBI) kept interest rates unchanged. 

 

The domestic currency closed nine paise lower at 88.78 against the greenback on Friday, according to Bloomberg. The currency fell 3.70 per cent so far this year, while it hit an all-time low of 88.80 on Tuesday. 

 

Over the past year, the rupee has weakened by more than 5 per cent, pressured by US policy moves, trade tensions and global uncertainties, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. 

 

 

Capital outflows, high gold imports and risk aversion have also weighed on sentiment, he added. "On a technical basis, momentum remains in favour of the dollar, with the rupee down 0.65 per cent over the past month." 

 

On Wednesday, while keeping the repo rates unchanged, the MPC maintained the policy stance at ‘neutral’. RBI Governor Sanjay Malhotra noted that the effects of the front-loaded monetary policy measures and recent fiscal actions were still unfolding.  The committee also revised its growth forecast for FY26 upward to 6.8 per cent while lowering the inflation forecast to 2.6 per cent.

 

In the post-policy press conference, the Governor said that the RBI does not target any specific rupee level and the efforts have been focused on managing undue volatility.

 

Meanwhile, the dollar index extended the losing streak amid reports that US President Donald Trump plans to fire thousands of government workers during the shutdown. The measure of the greenback against a basket of six major currencies was down 0.07 per cent at 97.77.

 

In commodities, crude oil prices were trading near a four-month low as sentiments are dominated by oversupply concerns. Brent crude price was up 0.55 per cent at 64.46 per barrel, while WTI crude prices were higher by 0.56 per cent at 60.82 per barrel, as of 3:40 PM IST.