Rupee ends little changed as traders stay cautious despite oil, dollar drop

What happened: The rupee closed at 94.90 per dollar, little changed from 94.95 in the previous session, as traders stayed cautious despite a drop in oil prices and the dollar. Key numbers: Rupee close 94.90 vs 94.95 prior session. Brent crude fell over 4% to $108.3 per barrel, lowest since October 21. Why it matters: A trader said rupee gains could be capped around 94.50, citing the RBI's large forward book that may spur fresh dollar buying to refill FX reserves as forward liabilities mature. MUFG said dollar strength alone is not expected to be a game changer.

The rupee closed at 94.90 per dollar, little changed from 94.95 in the previous session, as traders stayed cautious despite a drop in oil prices and the dollar.

A trader said rupee gains could be capped around 94.50, citing the RBI's large forward book that may spur fresh dollar buying to refill FX reserves as forward liabilities mature. MUFG said dollar strength alone is not expected to be a game changer.