Rupee ends flat as merchant bids, oil blunt comfort from modest inflows

The Indian rupee closed at 96.2550 per dollar, nearly unchanged from the previous close of 96.20, as merchant dollar demand offset support from modest foreign bank inflows. Sentiment remains tentative due to rising oil prices, with Brent futures climbing 2 percent to 86.44 dollars a barrel amid US-Iran tensions and concerns over energy supply disruptions. Meanwhile, swap markets are pricing about 40 basis points of Fed rate hikes over the next 12 months and 65 bps by the RBI, while India's June CPI rose above the 4 percent medium-term target for the first time in 17 months.