The Indian rupee remained around 88.7 per USD, near historic lows, after September’s inflation eased to 1.54%, below market estimates of 1.7% and the RBI’s 2–6% target, fueling expectations of rate cuts. This follows the central bank’s dovish remarks on potential future rate cuts during its September meeting. The Reserve Bank of India kept rates on hold and maintained a neutral policy stance, noting that muted inflation provides flexibility to support the economy. The currency has traded in a narrow range between 88.7 and 88.9 since September 23, prompting some traders to speculate that the RBI is intervening heavily to keep the rupee anchored. Key factors behind the currency's weakness included prolonged equity outflows, steep US tariffs linked to Russian oil measures, trade uncertainties and a tightening visa regime.