Rupee traders weigh Jio IPO flows against oil price risks

The Indian rupee was set for a broadly steady start on Thursday, with traders watching inflows tied to Jio Platforms’ IPO and the impact of oil prices. Business Recorder reported that the currency had ended Wednesday at 94.46 to the dollar, after an eight-session advance from around 96.60-96.70.

Measures by the Reserve Bank of India, intervention and IPO-related flows have supported the rise, while traders also cited the unwinding of positions in the non-deliverable forward market. The rupee moved through 94.70, a level that had constrained it during the previous week, potentially encouraging further cuts to long-dollar positions, according to a bank treasury official.

The IPO drew strong demand on its first day, led by institutional investors, though some related currency flows reach the spot market. Brent crude gained 1.5% to above $110.50 on Thursday amid heightened security concerns in Saudi Arabia, leaving expensive oil as a risk to the rupee’s recovery.