Rupee hits two-month low on outflows, investors await RBI outcome with hike priced in

What happened: The rupee ended at 96.42, down 0.1% from its previous close, hitting a two-month low on outflows ahead of the RBI policy decision. Dollar sales from state-run banks, likely for the RBI, limited the fall. Key numbers: Rupee closed at 96.42, down 0.1%. Why it matters: A hike would aid the rupee by raising the cost of betting against it, as short positions have stayed firm on lingering energy supply risks from Middle East conflict. Investors will watch policymakers' remarks for cues on future benchmark rates.

The rupee ended at 96.42, down 0.1% from its previous close, hitting a two-month low on outflows ahead of the RBI policy decision. Dollar sales from state-run banks, likely for the RBI, limited the fall.

A hike would aid the rupee by raising the cost of betting against it, as short positions have stayed firm on lingering energy supply risks from Middle East conflict. Investors will watch policymakers' remarks for cues on future benchmark rates.