Rupee slips but averts record low as intervention blunts outflow pressure

Currency movements are critical for FII flows and corporate earnings, especially for import/export-oriented businesses. RBI intervention signals vigilance.

• •Indian rupee weakened slightly on Wednesday.
• •Held off pressure from dollar demand linked to maturing non-deliverable forwards and foreign portfolio outflows.
• •Central bank intervened to support the currency.
• •Risk flag: Continued foreign portfolio outflows
• •Risk flag: Global dollar strength