The Indian Rupee stood at bay on Monday, having ended flat against the US dollar, with anticipation of foreign inflows into equity markets due to the prevailing initial public offerings (IPO). Reports showed that the domestic currency closed the day at 88.79 against the greenback, and opened slightly higher than that at the beginning of the day, three paise. Although the marginally stable close prevailed, the Rupee has already weakened by 3.71 percent till 2025 and only recently reached an all-time low of 88.80 last week.
The IPO calendar within the country has been a cause of market movement and currency variations. Tata Capital started its IPO on Monday, with the target of up to 15,511.90 crores, making it the biggest issue in the non-bank financial sector this year. LG Electronics India unit will open its IPO subscription on Tuesday after Tata Capital, with an order target of 11,600 crore. Analysts feel that such big IPOs are drawing the attention of a large number of foreign investors, which will, to some extent, support the Rupee, but the volatility will go on.
In the meantime, the US dollar has been strengthening over a list of six main currencies, and the dollar index has improved by 0.73 percent to 98.43. Greenback appreciation is seen to coincide with the increasing demands in the possible shutdown of the US government, and this has caused uncertainties in world currency and financial markets.
On Monday, commodity markets also recorded strong changes. Prices concerning crude oil increased after Israel and Hamas planned to meet with Egypt to negotiate a potential exchange of the Israeli hostages with the Palestinian inmates. Brent crude and WTI crude went up by 1.77 percent and 1.82 percent to $65.67 and 61.99 per barrel, respectively, at 3:45 PM IST. Increasing oil prices may also have an additional impact on the balance of trade in India and the performance of the Rupee in the short term.
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