India’s rupee slipped to 95.02 against the dollar, nudging up 10 paise from Tuesday’s close of 95.12. The move came as traders brace for the Fed’s policy announcement after market close.
State‑run banks sold dollars earlier this week, lifting the rupee to a 95.24 intraday low before rallying back. Traders now eye 95.30 as a near‑term support level, while the RBI’s special dollar‑purchase window for oil refiners has helped mitigate the impact of higher crude prices.
Brent crude edged up 1.6% to $115.74 a barrel after an attack on a Saudi refinery raised supply‑disruption worries. Higher oil prices inflate India’s import bill and boost dollar demand, tightening the rupee’s footing.
Market consensus leans toward a steady Fed rate on Wednesday, but persistent inflation keeps a December hike in the back of analysts’ minds. ING Bank’s senior economist, Nilay Joshi‑Wahab, notes that Fed guidance will likely ripple across emerging‑market currencies, including the rupee.