Rupee closes 95.1175, strongest since July 7 after oil drop
The Indian rupee just closed at 95.1175 against the US dollar, its strongest point since July 7.
This jump was mainly thanks to a sharp fall in global oil prices, with hopes of a diplomatic breakthrough in the five-month long U.S.-Iran war.
The rupee did slip a bit later in the day as oil and the US dollar bounced back.
Sonal Badhan expects December 25bp hike
The Reserve Bank of India kept interest rates steady, keeping an eye on how changing oil prices might affect inflation.
Analysts say the rupee could move between 94.75 and 95.60 for now, with short-term trading likely to shake things up.
With recent foreign exchange inflows helping out, Sonal Badhan, an economist at state-run Bank of Baroda, expects at least one 25-basis point rate hike in December to prevent real interest rates from turning negative and to protect the rupee.