Rupee Gains 22 Paise To 94.75 As RBI Intervention Offsets Oil Pressure

The Indian rupee strengthened by 22 paise to 94.75 against the US dollar on Monday as Reserve Bank of India (RBI) intervention supported the currency despite pressure from elevated crude oil prices.

The domestic currency opened 8 paise higher at 94.89 against the dollar, compared with Friday’s close of 94.97.

Market experts said the rupee’s proximity to the 95-per-dollar level suggests the RBI may be informally defending that threshold through repeated dollar sales.

Last week, the currency recorded its strongest weekly performance in nearly four years, supported by central bank intervention.

Foreign institutional investors (FIIs) remained net sellers in October, offloading shares worth Rs 54,636 crore through October 16.

This exceeded their total selling in September. However, investors reduced their selling in recent sessions and turned marginal buyers on October 16.

Experts attributed the temporary shift partly to a decline in the US 10-year Treasury yield from above 5.3 per cent to 5.08 per cent and the rupee’s recovery below 95 per dollar. They cautioned that the change in FII activity appeared tactical rather than structural.

Foreign investors continued selling financial and oil stocks but bought shares in consumer-facing sectors, including digital platforms, entertainment, restaurants and healthcare.

The Nifty’s 2.77 per cent weekly gain triggered some FII short covering and supported banking stocks, which had faced significant selling pressure.

Crude oil prices remained a key concern. Brent crude briefly crossed $110 a barrel on Friday for the first time since May before falling more than 1 per cent to around $108 on Monday.

The decline followed US President Donald Trump’s waiver of new sanctions on Russia and tariffs on Russian goods, potentially allowing Russian fuel exports to increase.

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