Indian rupee faces pressure from oil headwinds, lack of inflow support

Business Recorder reported that the Indian rupee could open Monday near 95 per dollar, after ending Friday at 94.94. Traders put the expected opening range at 95.00 to 95.04, with the currency having traded between 94.32 and 94.97 during the previous week. Support from foreign investment flows associated with Jio Platforms’ IPO helped the rupee last week, but that backing is not expected to continue.

The IPO allotment is scheduled for Monday, followed by the shares’ market listing on Wednesday. Meanwhile, Brent crude near $115 a barrel is weighing on sentiment and raising concerns about India’s external outlook, although refiners are currently meeting foreign-exchange needs through a special Reserve Bank of India facility. Traders are also watching the Federal Reserve’s decision this week for signals about the interest-rate path, including the possibility of a December increase.

For market readers, the report highlights the connection between oil costs, investment flows and the rupee’s direction. It also identifies the Federal Reserve outlook as a factor being monitored by currency markets.