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Rupee Eases to 88.65, Stays in 88.40–88.80 Range as Oil, Outflows Weigh

MSCI stock additions offer a near-term cushion for the rupee.

Overview

  • The rupee opened at 88.61 on Wednesday and softened to 88.65 from Tuesday’s 88.50 close after a strong session the prior day.
  • Higher Brent prices and continued foreign portfolio outflows capped gains, with a recent $5.62 billion drop in RBI forex reserves tempering confidence.
  • Progress on a US shutdown bill and President Donald Trump’s comments that the US is “pretty close” to a trade deal with India supported Tuesday’s appreciation.
  • MSCI added Fortis Healthcare, GE Vernova T&D India, One97 Communications and Siemens Energy India to its Global Standard Index, a move expected to draw passive inflows.
  • Brokerages highlighted support near 88.40 and resistance around 88.80–89.00; Jefferies still sees the rupee around 90 per dollar over the next 12 months.