Indian rupee oil-linked losses meet key hurdle, RBI defence in focus

Business Recorder reported that the Indian rupee was set to open little changed or slightly weaker on Tuesday, after losing 0.3% to close at 95.1850 per dollar in the prior session. Brent crude was near $115 a barrel, its highest level in six months, while renewed Houthi attacks on Saudi Arabia raised concerns about possible supply disruptions.

The rupee’s rebound to 94.30 last week, supported largely by central bank action and one-off inflows, is facing weak portfolio flows and limited macroeconomic support. Companies are increasing hedging as sentiment remains fragile, and the currency stayed under pressure on Monday despite signs of RBI dollar sales. Traders are watching 95.30, where the RBI has intervened more forcefully; a sustained breach could put 96 per dollar in view. Mixed Asian currency moves ahead of Wednesday’s Federal Reserve decision offered little direction.