Indian rupee seen at 95.30-96.80 in October; global yields, FPI outflows pose risk: Report

According to a report from the Times of Oman, the Indian rupee is expected to trade within a range of 95.30 to 96.80 against the US dollar throughout the month of October. Market analysts suggest that the currency will likely maintain a sideways trajectory as it navigates a complex landscape of global and domestic economic pressures.

The forecast highlights that while India's robust foreign exchange reserves and recent trade agreements provide a degree of stability, the currency remains vulnerable to external headwinds. Specifically, rising global bond yields and potential outflows from Foreign Portfolio Investors (FPIs) are identified as the primary risks that could exert downward pressure on the rupee during the coming weeks.

Financial experts note that the interplay between domestic monetary policy and shifting global interest rate environments will be critical in determining whether the rupee holds within this projected band. Investors and market participants are expected to monitor upcoming data releases and central bank commentary closely to gauge the potential for further volatility in the broader Indian financial markets.