Rupee claims near two-week high as US midterms singe dollar, flows improve
INDA•The rupee rose to a nearly two-week high of 94.51 per dollar before trimming gains to 94.63, up 0.1%. A weaker dollar, lower oil prices and roughly $1 billion in foreign purchases of Indian equities in November supported the currency.
1. Rupee gains
The Indian rupee rose to its strongest level in nearly two weeks on Wednesday, touching 94.51 per dollar before trimming gains to 94.63, up 0.1% on the day. The dollar fell as Democrats made gains in the US midterm elections, lifting most Asian currencies by 0.1% to 0.3%.
2. Flows and oil support
A dip in oil prices and early signs of renewed foreign portfolio buying also supported the rupee. Overseas investors bought roughly $1 billion of Indian equities in November to date, following two consecutive months of selling, while importer demand for dollars limited the currency’s gains.
