Rupee Edges Higher as Oil Prices Ease, FPI Flows Support
The Indian rupee started Monday (September 21) on a positive note, opening higher against the US dollar. This development comes as Brent crude prices fell by around 2% to $101.70 a barrel, easing concerns over energy supplies linked to the Iran-US conflict.
Traders are also keeping an eye on foreign portfolio flows for further direction. The National Stock Exchange's $2.3 billion initial public offering was fully subscribed last Friday (September 18), with foreign investor participation expected to remain in focus as the issue progresses.
According to Goldman Sachs, while elevated oil prices may continue to put pressure on India's current account, improved capital-flow dynamics could keep the USD/INR pair within a 95-97 range. The Reserve Bank of India has taken measures to support capital inflows, including steps related to overseas foreign currency deposits and borrowings.