Rupee rises 22 paise on RBI intervention despite crude oil pressure

NEW DELHI — The Indian rupee traded 22 paise higher at 94.75 against the US dollar on Monday as Reserve Bank of India (RBI) intervention supported the currency despite pressure from elevated crude oil prices.

Earlier in the day, the local currency opened 8 paise higher at 94.89 from the previous close of 94.97 against the American currency.

The rupee is hovering near the 95-per-dollar mark which could be the RBI's soft defence line with repeated dollar sales helping limit weakness, according to experts.

Last week, the currency posted its best weekly performance in nearly four years, buoyed by central bank support and spot market intervention.

The RBI has stepped up intervention to support the rupee which remains under pressure from oil prices and capital outflows.

Market experts said FIIs continued selling in October with total selling of Rs 54,636 crore till October 16, higher than September total.

However, they reduced selling intensity in last few days and turned marginal buyers on October 16.

"The marginal decline in US 10-year yield from above 5.3 per cent to 5.08 per cent and strengthening of rupee to below 95 are significant factors for temporary change in FII stance," the experts said.

They added the brief change is likely more tactical than structural.

FIIs continued selling in financials and oil sectors but were buyers in consumer services like digital platforms, entertainment, restaurants and healthcare.

The sharp 2.77 per cent gain in Nifty during the week led to some short covering by FIIs, imparting resilience to banking stocks which had borne the brunt of selling.

In addition, crude oil prices remain a key pressure point. Brent crude briefly climbed above $110 a barrel on Friday for first time since May before easing more than 1 per cent to around $108 on Monday.