diff --git a/NEWS.md b/NEWS.md
index 82fabf99f3..4604112bfd 100644
--- a/NEWS.md
+++ b/NEWS.md
@@ -3,6 +3,9 @@ rmarkdown 2.10
 
 - New supported syntax for Shiny prerendered documents: you can now  use `server: shiny` or `server: type: shiny`.
 
+- Fix intermediate files being created at the current directory instead of the input directory when the input file name contains shell characters and `render(intermediates_dir = NULL)` (thanks, @atusy, #1982).
+
+
 rmarkdown 2.9
 ================================================================================
 
diff --git a/R/render.R b/R/render.R
index 18bca61099..1a8494b23c 100644
--- a/R/render.R
+++ b/R/render.R
@@ -328,6 +328,8 @@ render <- function(input,
     if (!dir_exists(intermediates_dir))
       dir.create(intermediates_dir, recursive = TRUE)
     intermediates_dir <- normalize_path(intermediates_dir)
+  } else {
+    intermediates_dir <- normalize_path(dirname(input))
   }
   intermediates_loc <- function(file) {
     if (is.null(intermediates_dir))
@@ -336,12 +338,17 @@ render <- function(input,
       file.path(intermediates_dir, file)
   }
 
-  # resolve output directory before we change the working directory in
+  # resolve output directory and file before we change the working directory in
   # preparation for rendering the document
   if (!is.null(output_dir)) {
     if (!dir_exists(output_dir))
       dir.create(output_dir, recursive = TRUE)
     output_dir <- normalize_path(output_dir)
+  } else if (!is.null(output_file)) {
+    # if output_dir is not null, output file becomes relative to output_dir later
+    output_file <- structure(file.path(normalize_path(dirname(output_file)),
+                                       basename(output_file)),
+                             class = class(output_file))
   }
 
   # check whether this document requires a knit
@@ -367,12 +374,6 @@ render <- function(input,
     file.copy(input, input_no_shell_chars, overwrite = TRUE)
     intermediates <- c(intermediates, input_no_shell_chars)
     input <- input_no_shell_chars
-
-    # if an intermediates directory wasn't explicit before, make it explicit now
-    if (is.null(intermediates_dir)) {
-      intermediates_dir <-
-        dirname(normalize_path(input_no_shell_chars))
-    }
   }
 
   # never use the original input directory as the intermediate directory,
@@ -483,7 +484,7 @@ render <- function(input,
   }
   pandoc_to <- output_format$pandoc$to
 
-  # generate outpout file based on input filename
+  # generate output file based on input filename
   output_auto <- pandoc_output_file(input, output_format$pandoc)
   if (is.null(output_file) || is.na(output_file)) output_file <- output_auto else {
     if (!inherits(output_file, "AsIs") && xfun::file_ext(output_file) == "")