The rupee gave up its early gains with traders cautious ahead of the US mid-term elections on Tuesday
| Photo Credit:
shylendrahoode
The Indian rupee closed nearly
flat on Monday, giving up early gains despite lower oil prices
and a weaker dollar, as traders stayed cautious ahead of
Tuesday’s US mid-term elections.
The rupee closed at 94.90 per dollar, little
changed from its close at 94.95 in the previous session.
Brent crude oil prices slid over 4% to $108.3 per barrel,
the lowest since October 21, on hopes for a deal to end the Iran
war.
Iranian negotiators left peace talks in Doha on Sunday. A
draft proposal is being circulated for feedback and a follow-up
meeting is possible, an official briefed on talks told Reuters.
The dollar index was down about 0.5% as well at 101.5
as investors braced for a packed week dominated by the US
midterm elections.
Americans will head to the polls on Tuesday to determine
whether Democrats can wrest control of Congress away from US
President Donald Trump’s Republican Party. The outcome of the
elections is expected to influence the path of the Iran war and
holds implications for massive investments pouring into AI.
“A damaging defeat for the Republicans could put a dampener
on US dollar strength, but we don’t expect it to be game changer
on its own,” MUFG said in a note.
The lower oil prices and weaker dollar, though, did little
to aid the rupee as traders remained cautious about how global
factors will shape up. Two Singapore-based traders also pointed
to strong dollar-buying appetite in the non-deliverable forward
market.
“There is a view in the market that rupee’s gains could be
capped around 94.50, especially in light of the RBI’s large
forward book, which may spur fresh dollar buying by the central
bank to refill FX reserves as forward liabilities mature,” a
trader at a foreign bank said.
Data released post market hours on Friday showed that
Reserve Bank of India’s net short dollar forward position surged
to nearly $240 billion in September from $200 billion in August.
Published on November 2, 2026
