Rupee recovers from day's low even as oil prices advance; ends at 88.67/$

Indian Rupee today: The domestic currency closed two paise higher at 88.67 against the greenback on Monday

The Indian Rupee recovered from the day's lows to end marginally higher on Monday, even as the dollar index and crude oil prices advanced. 

 

The domestic currency closed two paise higher at 88.67 against the greenback on Monday, according to Bloomberg. The currency has fallen 3.58 per cent so far this year, while it also closed at a low of 88.79 last week.

 

Market sentiment is influenced by US dollar strength amid a modest risk-off tone globally, alongside domestic factors such as the Reserve Bank of India's (RBI) stable policy stance and a controlled inflation outlook, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. 

 

 

While dollar-rupee remains stable within a narrow band, supporting steady hedging and portfolio adjustments, short-term fluctuations are still sensitive to geopolitical developments, requiring careful monitoring, Bhansali said. 

 

In a move to ease tensions with China, US President Donald Trump on Sunday said Chinese President Xi Jinping is respected, adding that Washington wants to help Beijing. 

 

In a post on Truth Social, Trump wrote, “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” Trump's remark came days after tensions between the two countries escalated, risking upending the truce. 

 

The US dollar index traded higher on a softer US-China trade stance. The measure of the greenback against a basket of six major currencies was up 0.13 per cent at 99.10.

 

Key events this week include China’s key economic data and India’s CPI inflation data on October 13. On October 14, India will release WPI inflation data, and US Federal Reserve Chair Jerome Powell is scheduled to speak. The week concludes with the RBI MPC minutes being released on October 15.

 

In commodities, crude oil, which had fallen to a five-month low last week, advanced on Monday. Brent crude price was up 1.85 per cent at 63.89 per barrel, while WTI crude prices were higher by 2.04 per cent at 60.10 per barrel, as of 3:35 PM IST.