Rupee Steadies as Softer Oil, RBI Sales Support

The Indian rupee hovered around 95.6 per dollar, steadying after gaining for three consecutive sessions as softer oil prices and continued RBI intervention limited downside, while traders remained cautious ahead of developments on US-Iran diplomacy. Brent crude hovered near a two-week low around $99.2 a barrel on hopes of a diplomatic resolution to the Middle East conflict, easing concerns over India’s energy import bill. State-run bank dollar sales and RBI spot intervention and FX swaps also helped contain losses. The central bank’s earlier policy measures have attracted about $133 billion through the diaspora deposit scheme, lifting FX reserves to a record high. However, foreign equity outflows remain a drag, with overseas investors selling $1.81 billion of Indian shares in September and $25.87 billion so far this year.