Forex traders said investors are watching Wednesday’s Federal Reserve policy decision for further clues. Markets assign a 97.8 percent probability of a 25 basis point rate cut, with another expected in December, they said.
At the interbank forex market, the rupee opened at 88.34 and fell to 88.40 against the dollar, down 21 paise from the previous close.
On Monday, the rupee fell by 36 paise to close at 88.19 against the US dollar.
“For now, the market seems to be teetering between short-term pressure and medium-term optimism. The rupee is expected to find strong resistance near 88.40, while support lies around 87.60-87.70. A break below that zone could open the door for a move towards 87.20,” said CR Forex Advisors MD – Amit Pabari.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.12 percent to 98.66. Brent crude, the global oil benchmark, rose 0.02 percent to USD 65.63 per barrel in futures trading. At domestic equity markets, Sensex rose 125.93 points to 84,904.77 in early trade, while Nifty rose 39.8 points to 98.66. 26,005.85.
Foreign institutional investors sold shares worth Rs 55.58 crore on Monday, according to stock exchange data.
Meanwhile, crude oil imports from the United States rose to the highest level since 2022 in October, a move seen as part of New Delhi’s efforts to diversify supplies away from Russia and ease trade tensions with the Trump administration.
India’s imports of crude oil from the US reached 540,000 barrels per day on October 27 – the highest level since 2022, according to Kpler data.
October will likely end at close to 575,000 barrels per day, and November looks set to record around 400,000-450,000 barrels per day based on US export data – a sharp jump from the annual average of around 300,000 barrels per day.
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