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Rising Brent oil keeps Indian rupee defensive despite capital inflow push
Societe Generale said the RBI intervened in onshore and offshore USD/INR as Brent climbed to $100, while 1-year INR OIS rose to 6.05% and inflows were reported at about $20 billion.
Societe Generale strategists said the Indian rupee remained defensive even as policy steps aimed at attracting capital inflows coincided with rising oil prices. They pointed to Brent, which climbed to $100, as a factor pressuring INR sentiment.
The note said the Reserve Bank of India intervened in both onshore and offshore markets, with USD/INR trading near record highs. It also cited inflows of about $20 billion and said a rebound in 1-year INR OIS to 6.05% was dominating near term expectations.
FXStreet highlighted that the combination of higher oil prices and movement in INR rates has helped keep the currency cautious despite reported inflow support. The broader discussion noted that USD/INR conditions were being managed through RBI market actions.
Latest closeBrent $100.54 ▲6.9%