• The Indian Rupee weakens near a record low in Friday’s Asian session. 
• A negative trend in domestic equities and rising USD demand from importers weigh on the INR. 
• India’s Federal Fiscal Deficit for October and GDP growth data for Q2 FY25 will be released later on Friday. 

The Indian Rupee (INR) extends its decline near its all-time low on Friday. The rise in US Treasury bond yields, the month-end US Dollar (USD) demand and Foreign Portfolio Investors (FPIs) selling domestic equities exert some selling pressure on the local currency. Despite these challenges, the Reserve Bank of India (RBI) is likely to routinely intervene in the foreign exchange (forex) market by selling USD to prevent the INR from depreciating amidst global volatility.

Later on Friday, India's Federal Fiscal Deficit for October and Gross Domestic Product (GDP) growth data for the July-September 2024 quarter (Q2 FY25) will be in the spotlight. If the GDP report shows a stronger-than-expected outcome, this could help limit the INR's losses.