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Below the Quote on rupee by Rajeev Sharan, Head of Research, Brickwork Ratings

"The rupee slipped 9 paise to 94.55 against the dollar in early trade on Thursday from Wednesday’s 94.46 close, before regaining ground by afternoon. What changed today is that the war premium in energy prices finally cracked. Overnight, Brent crude plunged below the psychological USD 100 mark to USD 93.64 per barrel after the US midterm elections reduced fears of military escalation with Iran. Combined with a softer dollar index at 101.22, a 1,400-point Sensex rally, and INR 7,284 crore in foreign stock inflows, the macro tide has turned in India’s favour. Yet the rupee’s early dip proves a vital point. Even when oil crashes and foreign cash floods in, the rupee will climb slowly because importers and the RBI are using every rally to buy cheap dollars.”

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