• The Indian Rupee extends the decline in Tuesday’s Asian session.
• Negative domestic markets and relentless foreign capital outflows weigh on the INR.
• Investors await the outcome of the US presidential election for fresh catalysts.

The Indian Rupee (INR) extends its downside on Tuesday after closing at a new all-time low in the previous session. The downtick movement of the local currency is pressured by continuous foreign outflows from the equity markets due to jitters amid institutional players ahead of the outcome of the US presidential election and the US Federal Reserve (Fed) interest rate decision on Thursday.

Nonetheless, the likely foreign exchange intervention from the Reserve Bank of India (RBI) by selling US Dollar (USD) could help limit the INR’s losses. Looking ahead, investors brace for the winner of the US presidential election, which may not be known for days after voting ends. On Thursday, the Fed monetary policy meeting will be closely watched.