Rupee seen opening little changed near 94.50 as oil and hedging cap gains
RBI stays active around the level while Brent holds near $97 on US-Iran supply risks
The Indian rupee is expected to open near 94.50 on Tuesday, influenced by rising oil prices and increased hedging by importers. Traders anticipate the rupee to trade between 94.48 and 94.50, having settled at 94.4850 against the dollar on Monday. The recent surge from around 95.70 to 94.50 has lost momentum due to these factors.
Importers have utilized the currency's recovery to secure fixed dollar rates, while the risk of higher crude costs maintains demand for hedging. The Reserve Bank of India, which initially propelled the rally through active dollar sales, now appears more focused on stabilizing the rupee near 94.50, rather than aggressively promoting it, according to bankers.
Oil prices have risen slightly, with Brent crude approaching $97 a barrel due to heightened US-Iran tensions and potential threats to Gulf energy infrastructure. Brent's price has surged nearly 8 percent last week, and Goldman Sachs expects it to reach $85 for December 2026 and $80 for 2027, given persistent threats to West Asia shipping.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
