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Rupee Edges Up Amidst Subdued Trade, Forward Premiums Ease
M
Moneycontrol•21-09-2026, 16:40
Rupee Edges Up Amidst Subdued Trade, Forward Premiums Ease
- •The Indian rupee closed marginally stronger at 95.8150 per dollar, supported by lower oil prices and portfolio inflows.
- •Importer hedging demand and dollar bids from oil refiners limited the rupee's gains.
- •Asian currencies were range-bound, while equities rose on hopes for diplomatic progress in the Iran war and Saudi oil recovery.
- •Dollar-rupee forward premiums eased, with the August 2027 month-end premium down 6 paisa, as traders assessed potential RBI rate hikes.
- •Analysts expect further US dollar gains, with the ECB and Fed potentially hiking rates in December; traders price in a 55% chance of a Fed hike in October.
Key Questions Answered
The Indian rupee closed marginally stronger at 95.8150 per dollar, supported by lower oil prices, portfolio inflows, and inflows related to the National Stock Exchange of India's IPO.
Asian currencies were mostly range-bound, and regional equities advanced after oil prices fell 2% due to investor hopes for diplomatic progress on the Iran war at the UN meeting and a partial recovery in shipments from Saudi Arabia.
Dollar-rupee forward premiums eased, with the August 2027 month-end premium down 6 paisa at 2.94 rupees, reflecting the trimming of previously paid positions as traders assessed whether India will join global rate-hike trends.
