The Indian rupee traded around 94.84 per dollar, hovering near a six-week high, as Reserve Bank of India (RBI) interventions and tighter foreign-exchange regulations continued to bolster the currency despite elevated crude oil prices and ongoing foreign portfolio outflows. The rupee appreciated 2% last week—its strongest weekly gain since March—after the RBI increased hedging costs and opened a dedicated dollar-supply window for state-owned oil companies. Persistent dollar sales by the central bank have helped defend the 95-per-dollar level, which traders view as a key support zone.
Even so, the outlook remains pressured, with Brent crude briefly surging above $110 a barrel on Friday, and foreign investors remaining cautious amid volatile global risk sentiment. Market participants are now waiting for key data releases, including India’s October flash PMI figures due on October 23, for fresh insight into the domestic economic outlook.
