Core Viewpoint - The Indian Rupee is facing significant pressure against the backdrop of a strengthening US Dollar, nearing its historical low exchange rate [1][3]. Group 1: External Factors - The primary external factor pressuring the Rupee is the overall strength of the US Dollar, with the Dollar Index hovering near a three-month high [4]. - The strong Dollar has led to a general weakening of Asian currencies, including the Rupee [4]. - The Federal Reserve's hawkish stance has altered market expectations regarding US interest rates, further strengthening the Dollar and impacting the Rupee negatively [7]. Group 2: Domestic Factors - Domestic pressures include ongoing dollar buying by Indian importers to hedge against overseas procurement costs, which continues to exert downward pressure on the Rupee [7]. - The imposition of high tariffs on Indian exports by the US since late August has contributed to the depreciation expectations of the Rupee [7]. - The maturity of positions in the non-deliverable forward (NDF) market has also stimulated demand for the Dollar, further weakening the Rupee [7]. Group 3: Market Sentiment and Future Outlook - Market sentiment is currently focused on upcoming speeches from Federal Reserve officials for insights into the future direction of US benchmark interest rates [8]. - The market now estimates a 70% chance of a rate cut by the Federal Reserve in December, down from over 90% a week prior, indicating a cooling of expectations for monetary easing [8]. - Short-term projections suggest that the Rupee may continue to experience moderate pressure, fluctuating within the range of 88.50 to 89.10 [8].