Indian rupee to rise on Jio IPO inflows, RBI while oil risks cloud outlook

The Indian rupee was expected to strengthen on Wednesday as dollar inflows tied to Jio Platforms’ IPO and Reserve Bank of India intervention offered support, Business Recorder reported. Traders forecast an opening at 94.75-94.80, compared with Monday’s close of 94.9250 to the dollar; markets were closed on Tuesday for a holiday.

The IPO’s anchor portion attracted bids for more than 30 times the shares available, and foreign investors’ currency transactions for allotments could add to dollar supply after shares are assigned. However, the rupee has struggled to move beyond 94.70, while higher oil prices and concerns over Red Sea shipping and Saudi infrastructure pose risks; Brent gained 1.5% to $110.34.