Overview
- The Indian rupee strengthened to about 94.72 per US dollar on Tuesday after Brent eased and foreign institutional investors returned to Indian equities, supporting the currency in early trade.
- The rupee had earlier weakened to 94.97 in early trade on Monday when a stronger US dollar pushed demand for dollars across emerging markets.
- Reserve Bank of India data showed India’s foreign exchange reserves fell by $1.269 billion to $719.748 billion in the week ended October 30, a move that market participants say can influence RBI intervention and limit sustained rupee gains.
- Pakistan’s currency logged marginal gains around 276.71–276.75 while the State Bank of Pakistan raised its policy rate by 50 basis points to 12 percent and reiterated a foreign reserve projection that excludes a formally requested $10 billion US stabilisation facility.
- Traders remain cautious because US midterm election results, diplomatic talks over Iran that affect oil, and recent crypto market shocks are keeping the dollar firm and could prompt further central‑bank action or volatility in import costs and reserves.