Rupee little changed against US dollar

The Indian rupee showed minimal movement on Thursday, as ongoing demand for the U.S. dollar from domestic oil companies and importers counteracted the positive impact of inflows related to initial public offerings (IPOs) and a decline in oil prices.

As of 10:50 a.m., the rupee stood at 83.33 against the U.S. dollar, maintaining a marginal difference from its previous close at 83.32.

Across Asian currencies, there was a mixed trend, with the Thai baht and Indonesian rupiah weakening, while the offshore Chinese yuan saw a 0.2% rise to 7.1491.

According to a foreign exchange salesperson at a private bank, consistent buying by oil companies at various levels, coupled with sustained demand from importers, influenced the forex market.

The dollar index experienced a dip in Asia, registering 103.72. However, it showed a slight recovery after Wednesday's release of initial jobless claims data, which revealed a greater-than-expected drop to 209,000 claims for the week ending Nov. 18. Economists polled by Reuters had anticipated 226,000 claims for the same period.

Brent crude oil futures decreased to $80.98, following the decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, to postpone discussions on oil output cuts.

Expecting a subdued session on Thursday due to diminished dollar liquidity amid the Thanksgiving holiday in the United States, Gaurang Somaiya, an FX and rates researcher at Motilal Oswal Financial Services, suggested a potential appreciation for the rupee into the next week. This optimism is based on the anticipation of IPO inflows providing support to the rupee, particularly given the current softness in the dollar.

This week, IPOs totaling approximately $900 million are scheduled in the domestic market.