Rupee Extends Gains as Oil Prices Ease Amid Diplomatic Hopes
The Indian rupee has continued its upward trend, reaching around 95.75 per dollar as oil prices eased. The Brent crude price fell by about 2% to $101.7 a barrel due to improved diplomatic efforts and increased Saudi energy shipments.
Meanwhile, the RBI's measures to boost foreign exchange reserves have been successful, lifting them to approximately $781 billion. Strong importer demand for dollars remains a concern, but the rupee has managed to hold its gains thanks to softer oil prices and potential portfolio inflows from the fully subscribed $2.3 billion NSE IPO.
However, Goldman Sachs now predicts that the Federal Reserve will deliver another 25-basis-point hike in October, which could put pressure on the rupee if it leads to a firmer dollar.