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

"The rupee edged up 7 paise to 94.05 on Friday from Thursday’s 94.12 close, though the tone turned cautious as the day wore on. Two things are pulling against the currency’s recent strength. Brent has rebounded to around USD 95.50 after reported attacks on Saudi oil facilities and fading hopes of a US-Iran deal, reviving the import-bill worry that had just eased. And October inflation breached the RBI’s 6% ceiling at 6.09%, raising the odds of a December rate move. For the rupee, that inflation print is double-edged: it signals cost pressure, but a December hike would also widen India’s already sizeable rate advantage over the US and support the currency’s carry appeal. Strong foreign inflows, over INR 7,800 crore on Thursday, remain a genuine cushion. The near-term swing factor is oil: if Brent climbs back, the rupee’s recovery stalls; if it resumes falling, 94 holds."

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