Rupee ends flat as stock slump, importer hedging erodes bounce
The Indian rupee held steady even as it initially surged, influenced by rising dollar demand from importers. However, the local stock markets, particularly the Nifty 50, suffered a decline of more than 1% due to underwhelming results in the technology and financial sectors. Meanwhile, Brent crude oil prices dipped about 2% after the US administration's sanction waivers.
The Indian rupee closed nearly unchanged on Monday, erasing modest early gains after local stocks slumped and importers stepped in to buy dollars over a largely subdued trading session.The rupee hovered between 94.76 and 94.96 through the day before closing the session at 94.9250, nearly flat compared with its closing level on Friday.India's benchmark stock gauge, the Nifty 50, fell over 1%, pressured by weakness in heavyweight information technology and financials stocks, both of which are among the sectors most heavily owned by foreign investors.Traders said importers' dollar demand was also a drag on the local currency on Monday even as Brent crude oil prices fell about 2% to $108 per barrel.Oil prices dropped following US President Donald Trump's decision to waive some sanctions on Russia.
