23.09.202604:06:44UTC+00Rupee Steadies as Softer Oil, RBI Sales Support

The Indian rupee traded near 95.6 per dollar, stabilizing after three consecutive sessions of gains, as softer crude prices and ongoing Reserve Bank of India (RBI) intervention helped limit downside pressure. Market participants also stayed cautious ahead of further developments in US-Iran diplomatic efforts.

Brent crude hovered near a two-week low of about $99.2 per barrel on expectations of a diplomatic resolution to the Middle East conflict, easing concerns over India’s energy import bill. Additionally, dollar sales by state-run banks, along with RBI activity in the spot market and through FX swaps, further helped contain rupee losses.

The central bank’s earlier policy measures have attracted roughly $133 billion via the diaspora deposit scheme, pushing foreign exchange reserves to a record high. Nonetheless, persistent foreign equity outflows remain a headwind, with overseas investors selling $1.81 billion of Indian equities in September and $25.87 billion year-to-date.