Traders cut Fed rate cut bets as the Indian rupee approaches historical lows.

Jin10 data reported on October 30th, due to traders reducing their bets on the Fed's interest rate cut in December, and the Indian Central Bank seemingly not intervening to support the Exchange Rate, the Indian Rupee is under pressure and weakening, nearing historical lows. On Thursday, the Indian Rupee fell 0.6% against the US dollar, the largest drop since August 29th, to 88.7437, close to the historical record of 88.8050 set in September. According to informed sources, earlier this month, when the Rupee approached that level, the Indian Central Bank had sold dollars to stabilize the Exchange Rate. Bansali, CFO of Finrex Treasury Advisors, stated: “After the Fed expressed skepticism about the interest rate cut in December, most Asian currencies weakened, but due to the lack of strong dollar selling from the Central Bank in today's Spot market, the Rupee was hit harder.” He expects that if it breaks the previous record, the Indian Rupee against the US dollar could move towards 89.50. Banerjee, a currency analyst at Kotak Securities, mentioned that if it breaks 88.8050, the Indian Rupee could further dip to 90. After the Indian Central Bank intervened earlier this month, this level has become a key psychological barrier that traders are following.