Indian rupee ends little changed as traders stay cautious despite oil, dollar drop

Business Recorder reported that the Indian rupee finished Monday at 94.90 to the dollar, compared with 94.95 at the prior close, after an early rise faded. Brent crude dropped more than 4% to $108.3 a barrel, its weakest level since October 21, while the dollar index slipped about 0.5% to 101.5.

Trading remained guarded before Tuesday’s US midterm vote, with market participants weighing possible effects on the Iran conflict and the dollar. A foreign-bank trader said expectations of rupee gains were limited near 94.50, citing possible dollar purchases by the Reserve Bank of India as forward liabilities mature. RBI data showed its net short-dollar forward position rose to nearly $240 billion in September from $200 billion in August; traders also cited firm demand for dollars through offshore forward transactions.