According to the report, the outlook for the Indian rupee is marred by global headwinds (stronger dollar) as well as weakening domestic fundamentals.

“Even so, intervention by the RBI is likely to keep INR (Indian Rupee) in the range of 82.25-82.75/$ in the near-term. Fed minutes and US Q3CY22 GDP (gross domestic product) scheduled to be released later in the month will determine the course of the forex market,” the report said.

Apart from pressure from a stronger dollar, factors such as high domestic inflation as well as rising risks on the external front due to a moderation in exports will also weigh on the Indian rupee, said Bank of Baroda.

Oil prices too have begun rising again supported by announcement of output cuts by the Organisation of Petroleum Exporting Countries (OPEC) and others.

The foreign portfolio investment (FPI) outflows too have increased in pace in October 22 and te RBI has stepped in the market in the last few days to prevent a sharp slide, the report said.

The rupee depreciated by 1.2 per cent in the last fortnight, breaching the psychological level of 82/$ on 7 Oct 2022, Bank of Baroda said.

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