Elevated oil prices keep up heat on Indian rupee, traders await cues from Fed

Business Recorder reported that the Indian rupee weakened on Wednesday, ending at 95.2200 per dollar against 95.1150 in the prior session. Brent crude rose more than 1% to $115.3 a barrel after an attack on a Saudi refinery raised concerns about possible supply disruption.

The report said the Reserve Bank of India was likely active in the market to limit the currency’s decline, while options trading showed increased positioning for further rupee weakness. Traders were also awaiting the Federal Reserve’s decision later on Wednesday; markets expected rates to remain unchanged, although pricing implied an 84% chance of a December increase. Qatar’s proposed draft agreement for ending the US-Israeli war with Iran was another factor investors were watching, as Tehran considered its response.