New Delhi [India], September 23 (ANI): The weakness in the Indian rupee continued on Tuesday, with the currency touching a record low of 88.67 per U.S. dollar at the time of filing this report. The pressure on the rupee came amid concerns over U.S. tariffs and jitters surrounding H1B visa rules.
K N Dey, a currency expert, told ANI that the rupee breached its lifetime low of 88.47/USD recorded on September 11 in the morning session.
“There were some FII’s buying yesterday, later part of trading hours, and today it’s month/ half year end outflows by general importers. Also, some export forward contract cancellations are reported. Next 2/3 days’ volatility may continue, but the Rupee’s further weakness may not be much,” Dey noted.
He added that volatility could continue over the next two to three days, but the rupee may not weaken much further from current levels.
“In fact, 88.47/50 are good levels to sell long term with 1 year forward quoting at 90.52. RBI is actively intervening in the market to avoid any undue volatility. Come October, hopefully the rupee should possibly start strengthening and might touch 87.50/60 in the coming 2 months,” Dey added.
Meanwhile, in the commodities market, safe-haven gold hovered near record highs as geopolitical tensions rose and investors awaited cues from several U.S. Federal Reserve officials scheduled to speak this week.
Manav Modi, Analyst – Precious Metal Research, Motilal Oswal Financial Services, said gold prices surged after the Fed decided to cut interest rates last week and signaled potential further easing.
“Gold breached the door of USD 3700 once again, while silver goes way past USD 43 on COMEX. Gold at USD 3787/ounce,” Modi highlighted.
He added that markets are closely watching comments from Fed Chair Jerome Powell and other policymakers after the central bank lowered rates by 25 basis points and raised expectations for two more cuts this year.
However, the Fed also cautioned about persistent inflation while casting doubt over the pace of easing in 2026 and 2027.
With a weaker rupee, active RBI interventions, and gold at historic levels, global uncertainties continue to dominate investor sentiment across currency and commodity markets. (ANI)
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