Rupee ends flat at 94.90 despite fall in oil prices
The Indian rupee closed at 94.90, witnessing a range from 95.03 to 94.69. Market participants remained on edge with the US midterm elections looming, impacting overall sentiment. Despite falling oil prices and a weaker dollar, there was an uptick in dollar demand. Notably, Foreign Portfolio Investors turned net buyers, purchasing ₹3,114 crore, lending slight support to the rupee.
Mumbai witnessed the Indian rupee closing nearly flat on Monday, with traders remaining cautious ahead of Tuesday's US midterm elections. The rupee ended at 94.90 against the previous close of 94.95 on Friday. Despite lower oil prices and a weaker dollar, the rupee failed to recover, according to traders.
Brent crude futures experienced a significant drop of 4.2%, reaching $108.64 per barrel, after peaking at a six-month high during the previous week. The sharp recovery of nearly 35 paise from the day's low suggests a renewed demand for the dollar at lower levels, indicating that the rupee faces resistance in maintaining its gains. Anil Bhansali, head of treasury at Finrex Treasury Advisors, noted that the rupee is struggling to sustain its gains amidst global dollar movements and fluctuations in crude oil prices.
On Monday, the rupee traded within a range of 95.03 to 94.69. The dollar index stood at 101.5, up from 101.7 the previous day. Foreign Portfolio Investors (FPIs) were net buyers of ₹3,114 crore in the domestic equities market, contributing to the stable rupee. However, the outlook on oil remains skeptical. Goldman Sachs raised its oil price forecasts on Sunday due to elevated supply risks, suggesting a potential surge to $140 in 2027.
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