The rupee revisited a two-week low against the dollar on Thursday, with USD/INR trading near 95.30 as elevated oil prices continued to weigh on an oil-import dependent currency. The MCX Crude Oil contract expiring 19 November was down 1.5% to about Rs 9,650, though it remained close to recent highs of Rs 9,828. Reports pointing to potential US and Israeli action against Iran after their elections, alongside tensions involving Iran-aligned Houthis and Saudi Arabia, kept supply-risk concerns in play; Reuters also reported a Houthi ballistic missile launch towards the Ras Tanura refinery.
Central Bank Intervention And Dollar Movements
Traders cited by Reuters said the Reserve Bank of India likely intervened in the foreign exchange market on Wednesday to support the rupee. The dollar also firmed after the Federal Reserve kept rates unchanged at 3.75%–4.00%, while the US Dollar Index was marginally higher near 102.20 after dipping to around 102.00. On the chart, USD/INR traded at 95.2875, stayed below the 20-day EMA at 95.3303 and showed an RSI around 47, with a recent closing low just under 95.10 watched as an indicative demand area.
