Rupee ends flat as stock slump, importer hedging erodes bounce
INDA•The Indian rupee closed nearly unchanged at 94.9250 after trading between 94.76 and 94.96, as falling stocks and importer dollar demand erased early gains. The Nifty 50 fell more than 1%, while Brent crude dropped about 2% to $108 per barrel.
1. Rupee closes nearly flat
The rupee closed at 94.9250 on Monday, nearly unchanged from Friday, after early gains faded as local stocks slumped and importers bought dollars. The currency traded between 94.76 and 94.96.
2. Markets watch policy cues
The Nifty 50 fell more than 1%, while Brent crude declined about 2% to $108 per barrel after the U.S. waived some sanctions on Russia. Investors are awaiting minutes from the Reserve Bank of India’s October policy meeting, when it delivered its first rate hike in four years. ANZ said it expects a 25-basis-point hike in December, but persistent foreign-exchange pressure could raise the probability of a 50-basis-point hike or a 25-basis-point repo hike alongside an increase in the Marginal Standing Facility rate.
