The Indian rupee came under selling pressure after foreign investors offloaded equities worth roughly ₹2,900 crore on Monday (September 22) and another ₹3,500 crore on Tuesday (September 23).
Such large-scale selling often triggers dollar buying the following day, adding to the currency’s weakness. Analysts say this pattern is a common reaction to sustained foreign fund outflows.
Month-end dynamics add volatility
End-of-month flows are also influencing market movements. Exporters typically bring in dollars to cover salaries and payments, while public sector banks may purchase dollars on behalf of oil companies. These routine transactions tend to create additional volatility in the final days of the month.
The rupee recently slipped below the 88.50 level, which had previously acted as support. Traders cite lingering concerns over visa regulations, U.S. tariffs, and H-1B restrictions, which have shifted sentiment toward a potential 89 level in the near term.
The Reserve Bank of India (RBI) is expected to step in before the rupee breaches 89. While a repeat of Tuesday’s sharp fall is unlikely, analysts suggest the currency may continue to face pressure in the short term.
For the full interview, watch the accompanying video
Catch all the latest updates from the stock market here
