Rupee Near 6-Week Highs

The Indian rupee hovered near 94.84 per dollar, holding near six-week highs as Reserve Bank of India interventions and tighter foreign-exchange curbs continued to support the currency despite elevated crude oil prices and persistent foreign portfolio outflows. The rupee gained 2% last week, its strongest weekly performance since March, after the RBI raised hedging costs and opened a dedicated dollar supply window for state-run oil companies. Continued dollar sales have helped curb weakness around the 95-per-dollar mark, which traders view as a key level of support. However, Brent crude briefly surged above $110 a barrel on Friday, keeping pressure on the currency, while cautious foreign investors and volatile global risk sentiment pose further challenges. Meanwhile, market participants are awaiting key economic indicators, including India's October flash PMI data due on October 23, for fresh cues on the domestic economic outlook.