Rupee Strengthens by 7 Paise to 93.70 Against US Dollar Amid Positive Foreign Inflows
NEW DELHI: The Indian rupee opened strong on Wednesday, gaining 7 paise to reach 93.70 against the US dollar. This rise is attributed to renewed foreign fund inflows, declining crude oil prices, and improving geopolitical sentiment. The rupee has emerged as one of Asia’s top-performing currencies in FY27.
In the interbank foreign exchange market, the rupee started at approximately 93.71 before climbing to 93.70, up from its previous closing level of 93.77 on Monday. Domestic equity, currency, and debt markets were closed on Tuesday due to ‘Diwali Balipratipada.’ On Monday, the rupee had gained 21 paise.
CR Forex Advisors MD Amit Pabari noted that the rupee’s positive momentum is supported by the steady return of foreign capital and softer crude prices. He indicated that if these factors persist, the USD/INR could decline further towards 93.50, with 93.00 being a critical level to monitor.
Meanwhile, the dollar index, which tracks the greenback’s strength against a basket of six currencies, was at 102.26, up 0.03 percent. Brent crude, the global oil benchmark, was trading 1.01 percent higher at USD 92.41 per barrel in futures trade.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak NEO, stated that lower oil prices support the rupee by reducing the import bill. However, higher US yields and a stronger dollar continue to apply pressure. He added that India’s inflation data, set to be released on Thursday, will be a key domestic policy signal.
Foreign investment flows have bolstered domestic markets. Data shows that foreign institutional investors (FIIs) purchased equities worth Rs 7,212.22 crore on Monday. In November, foreign investors have turned net buyers of Indian equities, investing Rs 53,739 crore in the first nine days, following two months of outflows. This buying trend is driven by the AI-led sell-off in global markets, strong domestic earnings growth, and attractive valuations of large-cap stocks. In October, foreign investors withdrew Rs 34,843 crore and Rs 35,861 crore in September, according to depository data.
