Rupee rebound bets vanish as soaring crude blunts inflows

The Indian rupee is facing renewed pressure as a more than 20% surge in crude oil prices over two weeks has eroded the impact of RBI measures to attract foreign capital estimated at up to $80 billion by Citigroup. Analysts from Danske Bank and Ebury Partners predict fresh lows, with the currency hovering near its record low of 96.9650 and Monex Europe forecasting 98 per dollar by year-end. Foreign investors were net sellers of $690 million in Indian stocks last week, while the RBI's diaspora deposit mobilization of about $17 billion is seen as a liquidity band-aid rather than a structural solution.