The Indian rupee traded near 94.6 per dollar, touching a six-week high after the holiday, supported by anticipated dollar inflows from Jio Platforms’ IPO and continued intervention by the Reserve Bank of India (RBI). The currency extended its winning streak to a seventh consecutive session and is now up 5.18% year-to-date, as the central bank persisted with dollar sales and intensified scrutiny of large overseas investments to stem capital outflows.
Investors are now awaiting the release of the RBI’s October policy meeting minutes later on Wednesday for signals on the likelihood of further rate hikes, following the recent 25-basis-point increase in the repo rate to 5.50%. Nonetheless, elevated oil prices continue to pose a downside risk, as higher crude costs could widen India’s import bill and bolster demand for dollars.
