The rupee weakened while most other Asian currencies rose after the Fed held rates, with dollar demand and likely overseas debt-payment outflows weighing on India’s currency, Reuters reported.
At 2:37 a.m. ET (06:37 UTC) Thursday, Reuters put the rupee at 95.3675 per U.S. dollar, down 0.15% from Wednesday’s close of 95.22. The agency described the rate as the currency’s weakest in two weeks. Moneycontrol reported an opening rate of 95.23 per dollar, close to the previous session’s finish. The two readings capture different points in Thursday trading: Moneycontrol’s near-flat opening figure preceded Reuters’ lower snapshot.
Reuters cited persistent dollar demand and likely outflows for overseas debt payments as immediate pressures. A trader at a foreign bank told Reuters, “Buying is quite sticky and it doesn't seem that will change soon.” Reuters also said electronics manufacturers and jewelers were among the dollar buyers.
Brent crude traded near $115 a barrel Thursday morning, Reuters reported. India’s Petroleum Planning and Analysis Cell (PPAC) reported crude-oil import dependency of 88.2% for fiscal 2024-25, measured against petroleum-products consumption. That reliance exposes India to oil-price movements and their effect on import costs. EconoTimes previously covered a separate rupee decline that forex analysts linked to rising oil prices and weaker Indian shares.
The Federal Open Market Committee held the federal funds target range at 3.75%-4.00% on Oct. 28, the Federal Reserve said. The 10-2 vote included two members who favored a 0.25-percentage-point increase. The Fed said inflation remained elevated. Reuters reported that most Asian currencies rose after the decision, while the rupee did not join them. Reuters also reported, citing traders, that the Reserve Bank of India sold dollars before Wednesday’s market opening.
The European Central Bank’s calendar scheduled a monetary-policy decision for Oct. 29.
