Rupee Ends Flat at 94.90 per Dollar Despite Brent Crude Drop
· Business · Economic Times, LiveMint
The Indian rupee closed nearly flat at 94.90 against the US dollar in Mumbai on Monday, trading within an intraday range of 94.69 to 95.03. The local currency failed to sustain early gains despite Brent crude futures falling 4.2% to $108.64 a barrel and the dollar index easing to 101.5. Foreign Portfolio Investors provided underlying support to domestic equities by purchasing a net ₹3,114 crore worth of shares. However, renewed dollar demand at lower levels trimmed the rupee's advance as traders exercised caution ahead of the US midterm elections. Meanwhile, Goldman Sachs raised its long-term oil price outlook, forecasting Brent crude could reach $140 a barrel by 2027 due to supply risks.
Why it matters
Persistent dollar demand and long-term crude oil price risks continue to cap gains for the rupee. A range-bound currency keeps import costs elevated for Indian companies and limits immediate relief on domestic fuel inflation.
Read the original report — Economic Times
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