18.09.202603:40:35UTC+00Rupee Rebounds on Lower Oil, IPO Inflows

The Indian rupee firmed to around 95.7 per US dollar, rebounding from seven‑week lows, supported by softer crude oil prices, expectations of foreign portfolio inflows linked to the National Stock Exchange’s $2.3 billion IPO, and likely intervention by the Reserve Bank of India (RBI). Brent crude declined for a third consecutive session to about $104.1 per barrel, as optimism over alternative routes for Middle Eastern oil deliveries helped offset supply concerns. A modest pullback in US bond yields also eased pressure on the currency.

Market participants anticipate strong foreign institutional investor demand for the NSE IPO, which closes for subscription on Monday. The rupee hovered near 96 per dollar on Thursday despite the US Federal Reserve’s rate hike, having recovered on the back of probable RBI intervention and portfolio inflows linked to global equity index rebalancing. Nonetheless, solid dollar demand from importers and still-elevated oil prices continue to pose headwinds, while the US dollar remains above 100 following the Fed’s hawkish policy stance.