Quote on Rupee by Anindya Banerjee, Head of Currency & Commodity Research, Kotak Securities
Below the Quote on Rupee by Anindya Banerjee, Head of Currency & Commodity Research, Kotak Securities
As of October 8, 2025, USD/INR is trading at 88.77 on the spot market, showing little change for the day. Over the past week, the pair has exhibited limited volatility, likely due to central bank interventions aimed at containing sharp fluctuations. Continued foreign portfolio investment (FPI) outflows suggest sustained demand for dollars, which could exert upward pressure on USD/INR; however, exporter dollar sales and active Reserve Bank of India (RBI) intervention are helping to cap the pair’s rise. On the technical front, immediate resistance is seen near 89.00, with a more significant barrier around 90.00, while key support levels lie at 88.40 and 87.75. Globally, the US Dollar Index has strengthened, partly due to the weakness in the Japanese yen following the election of Sanae Takaichi as leader of Japan’s ruling Liberal Democratic Party.
Markets anticipate that her expansionary fiscal policies will reduce the likelihood of interest rate hikes by the Bank of Japan, resulting in the yen’s notable depreciation against the dollar. This, in turn, provides indirect support to USD/INR. Overall, the pair remains range-bound, influenced by domestic flows and central bank actions, while global currency dynamics, particularly a stronger US dollar, may provide additional upward support.
Above views are of the author and not of the website kindly read disclaimer
