Business
Rupee closes at 96.42 ahead of RBI policy
The Hindu BusinessLine··6d ago
The Indian rupee ended at 96.42 on October 6, 2026, its weakest close in over two months, The Hindu BusinessLine reported. The currency was down 0.1 percent from the previous close after equity outflows. About 60 percent of 61 economists polled by Reuters have pencilled in a 25 basis point RBI rate hike on Wednesday.
Prism
What It Means For You
- Traders are watching Wednesday's RBI policy for the first rate decision after February 2023.
- Dollar sales by state-run banks, likely for the RBI, limited the rupee's fall on Tuesday.
- Swap markets have priced a modest chance of a 50-basis-point increase.
What's Happening
- The central bank has used sell/buy FX swaps and bond sales to drain rupee liquidity.
- J.P. Morgan analysts said a 25 bps hike with hawkish guidance could aid near-term support.
- The dollar index was around the 102 handle as Asian currencies stayed mostly rangebound.
What Markets Are Pricing In
- The RBI last raised rates in February 2023, the report said.
- Short positions on the rupee have stayed firm on West Asia energy supply risks.
- Investors will also watch policymakers' remarks on the future path of benchmark rates.
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