Mumbai: The Indian rupee closed nearly flat on Monday, giving up early gains as traders stayed cautious ahead of Tuesday's US midterm elections. The rupee closed at 94.90 on Monday against 94.95 close on Friday. The rupee failed to recover despite lower oil prices and a weaker dollar, traders said. Brent crude futures fell 4.2%, to $108.64 a barrel, after being at a six-month high through the previous week.
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"The sharp recovery of nearly 35 paise from the day's low indicates renewed dollar demand at lower levels. The move also suggests that the rupee is facing resistance in sustaining its gains, with traders remaining cautious amid global dollar movements and crude oil price fluctuations," said Anil Bhansali, head of treasury, Finrex Treasury Advisors.
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The rupee traded between 95.03 and 94.69 on Monday. The dollar index was at 101.5, from 101.7 a day ago, while FPIs were net buyers of ₹3,114 crore in the local equities market, underpinning the rupee. Outlook on oil, however, remains one of scepticism. Goldman Sachs raised its oil price forecasts on Sunday due to elevated supply risks and said Brent could jump to $140 in 2027.
