Rupee Bounces 0.15% to 89.84/USD Open: Pre-RBI Relief Rally Amid Record Lows

Opening Dynamics

USD/INR debuted at 89.84 in early trade, appreciating ~14 paise from 89.97-90.19 prior close after hitting all-time low of 90.42 yesterday. State-run banks' dollar sales and corporate inflows aided rebound, with overnight range 89.86-90.42. Traders eye RBI MPC announcement today for rate cut cues amid rupee's 6% YTD depreciation.​

Key Pressures & Outlook

Weakness stemmed from widened CAD, FII selling (₹25,000 Cr Dec), US tariffs, and strong USD. RBI likely capped 90.50 breach via interventions. A 25 bps repo cut to 5.25% (60% odds) could stabilize at 89.50-90.50; forecasts see 88.91 by Feb 2026. US Core PCE data adds volatility.​

Key Highlights

Open Level: 89.84 (up 0.15% or ~14p from 89.97 close).​

Recent Low: 90.42 on Dec 4; YTD -6.09%.​

Range Today: 89.80-90.25 expected pre-MPC.​

MPC Impact: 25 bps cut odds 60%; liquidity measures eyed.​

Sources: MarketScreener (RTRS), Economic Times, Reuters, Moneycontrol​