Rupee ends little changed as traders stay cautious despite oil, dollar drop
INDA•The Indian rupee closed nearly flat at 94.90 per dollar, despite a more than 4% drop in Brent crude and a weaker dollar, as traders remained cautious ahead of the U.S. midterm elections.
1. Rupee closes nearly flat
The rupee ended Monday at 94.90 per dollar, little changed from its previous close of 94.95, giving up early gains despite lower oil prices and a weaker dollar. Brent crude fell more than 4% to $108.30 a barrel, while the dollar index was down about 0.5% at 101.5.
2. Traders cite dollar demand
Traders stayed cautious ahead of Tuesday’s U.S. midterm elections, with two Singapore-based traders pointing to strong dollar-buying appetite in the non-deliverable forward market. A foreign-bank trader said rupee gains could be capped around 94.50, citing the Reserve Bank of India’s forward book and possible dollar buying to replenish reserves. Data released Friday showed the RBI’s net short dollar forward position rose to nearly $240 billion in September from $200 billion in August.
