Rupee Ends Flat At ₹94.4850 Against US Dollar Amid Oil Price Pressures

The Indian rupee remained under pressure on Monday as rising crude oil prices and geopolitical tensions weighed on sentiment, although sustained intervention by the Reserve Bank of India (RBI) and strong foreign-currency inflows helped limit the currency's movement.

The rupee opened at ₹94.40 against the US dollar and touched an intraday high of ₹94.38 before weakening to ₹94.50. PTI reported a provisional close at ₹94.50, down 7 paise from Friday's ₹94.43 close. However, Reuters reported the currency closing at ₹94.4850 per dollar, broadly unchanged, highlighting the impact of continued RBI intervention.

Traders said state-run banks were seen selling dollars, likely on behalf of the RBI, as the central bank continued efforts to prevent excessive volatility in the currency market. Reuters reported that the RBI had sold at least $8 billion in recent weeks to support the rupee.

Oil prices remained a major concern. Brent crude was around $96.8 per barrel, supported by escalating tensions involving the US and Iran and concerns over energy supplies through the Strait of Hormuz.

Mirae Asset Sharekhan Research Analyst Anuj Choudhary said foreign inflows and a softer dollar were providing support, but weak domestic markets and higher crude prices were restricting gains. He said easing tensions around the Strait of Hormuz could bring down oil prices and support the rupee, while continued US-Iran tensions could exert pressure.

The dollar index was around 98.9, while Indian equities ended lower. The Sensex fell 382.62 points to 76,132.81, and the Nifty declined 118.55 points to 23,779.15.

Foreign institutional investors sold ₹3,111.94 crore worth of Indian equities on a net basis on Friday.

Meanwhile, India's forex reserves climbed $11.475 billion to a record $740.803 billion in the week ended August 28, providing the RBI with a substantial buffer to manage currency volatility.

Markets will now focus on US and Indian inflation data, along with developments in oil markets and expectations for the US Federal Reserve's interest-rate policy.