Rupee steadies near 96 as RBI intervention offsets oil and Fed pressure
The Indian Rupee weakened on September 15 as rising oil prices and expectations for US rate tightening pressured the currency, while likely RBI intervention limited losses.
The Indian Rupee fell to its weakest level in more than a month on Tuesday, settling around 95.9550 per US Dollar as rising oil prices and expectations for a Federal Reserve rate hike pressured the currency.
Reuters reported that likely central-bank intervention helped limit the Rupee's losses. Brent crude rose more than 2% to around $108.20 a barrel, increasing concerns about India's trade deficit and inflation.
India's August goods trade deficit came in at $26.8 billion, narrower than economists expected, while signs of broader price pressures increased speculation about a possible RBI rate hike later in the year.
Forex traders are watching oil prices, RBI activity and the Federal Reserve's policy decision for the next direction in USD/INR.
Key Takeaways
- Rupee settled near 95.9550 per Dollar on September 15.
- Likely RBI intervention limited further losses.
- Brent crude rose above $108, increasing inflation pressure.
- Fed policy expectations remain important for USD/INR.
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