Rupee likely pinned near 95 as RBI defence counters oil headwinds
The rupee is expected to open in a 94.92 to 94.98 range, per traders, having settled at 94.96 to the dollar on Friday
The Indian rupee may open at near 95 against the US dollar on Monday, according to traders, as the Reserve Bank of India (RBI) attempts to defend the currency against pressure from high oil prices. The central bank is expected to sell dollars in the spot market, providing support to the rupee and keeping it within a range of 94.92 to 94.98 per dollar.
The rupee has been hovering around the 95-per-dollar mark recently, briefly surpassing the level before struggling to maintain it. Despite the recent improvement, the rupee's performance has been subdued by the RBI's interventions and persistent oil price volatility. Brent crude oil prices, which reached $110 a barrel on Friday, have slightly eased to around $108 a barrel as of Monday, following US President Donald Trump's decision to waive sanctions on Russia.
However, analysts and investors believe that unless oil prices decline, the RBI's efforts to support the rupee will be limited.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
