The rupee strengthened on Monday
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The rupee strengthened on Monday and traded near a multi-week high against the dollar. The currency remained supported as the Reserve Bank of India's (RBI) stepped up dollar sales. High oil prices and foreign investor outflows have sustained demand for dollars, leaving the rupee reliant on RBI intervention to limit further weakness.
However, oil prices eased on Monday, with Brent falling 2% after President Trump signed an order on Friday waiving key sanctions and tariffs on Russia. The waiver raised expectations of increased Russian energy supplies. If sustained, lower crude prices would reduce India's import bill and its demand for dollars, supporting the rupee.
The minutes o’ the RBI’s October policy meeting are due on Wednesday and could clarify how concerned policymakers are about inflation and whether they see a need for tighter monetary conditions. In the US, jobless claims on Thursday and flash PMIs on Friday could shift Treasury yields and the dollar. Stronger data could lift the dollar and put pressure on the rupee, while weaker data could ease that pressure.
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