Indian rupee ends a tad higher as dollar slips after US midterms

The Indian rupee strengthened slightly on Wednesday, closing at 94.64 per dollar compared with 94.74 in the previous session. Business Recorder reported that a softer US dollar and cheaper oil supported the currency as investors weighed the US midterm results.

The rupee briefly reached a two-week high before losing some ground as demand for dollars from importers and interbank traders gathered near 94.50. The dollar index fell 0.4% to 101.3, while a Reuters poll found analysts still expect the South Asian currency to weaken over coming months.

Measures by the Reserve Bank of India have helped limit pressure, but analysts cited high oil prices and weak portfolio flows as continuing risks. Natixis said central bank interventions and other steps had bought time, while the underlying sources of currency weakness remained unresolved.