The Indian rupee strengthened sharply on October 21 as foreign portfolio inflows linked to Jio Platforms’ $3.2 billion (≈ ₹30,227 crore) initial public offering supported the currency, even as elevated crude oil prices limited further gains.
The rupee closed 0.5% higher at 94.46 against the US dollar after touching 94.43 earlier in the session, its strongest level since early September. The gains were partly supported by investor demand for Jio Platforms’ IPO, which was fully subscribed in less than two hours of public bidding.
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Jio IPO Inflows Support Rupee
Foreign portfolio inflows associated with Jio Platforms’ $3.2 billion IPO helped strengthen the rupee despite pressure from global markets.
The IPO was fully subscribed within two hours of opening for public bidding as investors participated in what was described as India’s largest share sale.
Amit Pabari, managing director at CR Forex, said the rupee holding below 95 against the dollar shifted attention towards the 94.80 to 94.70 range.
He said a sustained move below 94.80 could open the way towards 94 over the coming weeks and keep the near-term outlook favourable for the Indian currency.
Asian currencies were largely rangebound during the session, while the dollar index remained little changed at 101.8.
Oil Prices Limit Further Gains
The rupee surrendered some of its gains in the latter half of the session as crude oil prices rose and Indian equities declined.
Brent crude futures were up 1.3% at more than $110 per barrel, while the Nifty 50 fell 0.7%.
Rising tensions in the Middle East increased concerns over possible supply disruptions after Iran told Pakistan’s army chief that there would be no talks with Washington until its demands were met.
A trader at a state-run lender said volatility in crude oil would keep the rupee somewhat defensive, although sharp declines were unlikely in the near term.
RBI Policy Minutes in Focus
Market attention is now expected to shift towards the minutes of the Reserve Bank of India’s latest monetary policy meeting.
The RBI raised interest rates on October 7 in its first rate increase in four years and signalled that further increases were likely.
Data released last week showed that India’s retail inflation accelerated to a higher-than-expected 5.54% in September.
Swap markets are currently pricing in more than 100 basis points of additional rate increases by the RBI over the next 12 months.
The rupee’s near-term movement is therefore likely to remain influenced by a combination of foreign investment flows, crude oil prices and expectations surrounding the RBI’s interest-rate path.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
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