India’s rupee ended Nov. 2 near 94.90 per U.S. dollar, with market sources placing the close a paisa apart as traders monitored dollar buying before the U.S. midterm elections.
Reuters reported a 94.90 close, compared with 94.95 in the previous session. Mecklai Financial recorded 94.91, versus 94.96 a day earlier, and listed a trading range of 94.69 to 95.05 after an opening rate of 94.88. Each source showed a five-paise gain from its previous close.
Earlier Monday, the rupee touched ₹94.80 in trading, according to EconoTimes’ report on the early move to ₹94.80.
Moneycontrol’s provisional cash-market table listed foreign institutional and portfolio investors as net buyers of ₹3,114.68 crore in Indian shares on Nov. 2. It showed gross purchases of ₹16,499.46 crore and sales of ₹13,384.78 crore. The National Stock Exchange (NSE) says its combined FII/FPI figures remain provisional until custodians confirm them.
A Reuters report published at 5:47 a.m. ET (10:47 UTC) on Nov. 2 put Brent futures at $108.30 per barrel, more than 4% lower, and the dollar index at 101.5, down about 0.5%. Those were intraday readings. Mecklai Financial’s table recorded the dollar index at 101.583 at the close, against 101.968 in the prior session.
Reuters also cited two Singapore-based traders who described heavy demand for dollars in offshore non-deliverable forward trading. The Economic Times quoted Anil Bhansali, head of treasury at Finrex Treasury Advisors, as saying the rupee rebounded nearly 35 paise from its session low, a move he viewed as a sign of renewed dollar demand at lower levels.
A foreign-bank trader told Reuters the Reserve Bank of India might buy dollars to replenish foreign-exchange reserves as its forward liabilities mature. The trader said that demand could limit rupee gains near 94.50 per dollar. Reuters did not report confirmed central-bank intervention on Nov. 2.
The U.S. midterm elections were scheduled for Tuesday, Nov. 3, and Reuters said traders were cautious ahead of the vote. USAGov says the elections will determine seats in the House and a portion of the Senate.
