Jio Platforms' IPO-linked inflows boost Indian rupee; elevated oil prices spur caution

The Indian rupee gained 0.5% to finish Wednesday at 94.46 per dollar, its strongest close since early September, as foreign portfolio money associated with Jio Platforms’ IPO supported demand. The $3.2 billion offering was fully subscribed within less than two hours of public bidding, Business Recorder reported.

The currency gave back part of its advance later in the session as Brent crude rose 1.3% to above $110 a barrel and the Nifty 50 fell 0.7%. Middle East tensions added to concerns about oil supply, while market attention is now shifting to minutes from the RBI’s latest policy review; the central bank raised rates on October 7 and indicated further increases were likely. Swap markets are pricing in more than 100 basis points of RBI rate hikes over the coming 12 months.