Indian rupee ends flat after hitting two-week low, oil and RBI remain key

Business Recorder reported that the Indian rupee finished Thursday at 95.26 per dollar, almost unchanged from 95.22 in the prior session. It had earlier weakened to its lowest level in two weeks, as demand for dollars and short positions weighed on the currency. Traders attributed its recovery to likely Reserve Bank of India intervention and easing oil prices.

Lower oil prices also supported Indian shares and bonds: the Nifty 50 gained about 1%, while the 10-year government bond yield fell 8 basis points to 7.35%. The dollar index rose 0.1% to 102.26, and Asian currencies advanced between 0.1% and 0.3%. Attention was turning to US personal consumption expenditure inflation data, with ING expecting September core inflation to rise 0.3% month on month and predicting a modestly stronger dollar response.