Rupee Rises 26 Paise to 94.96 on Strong Indian Growth
By Market Desk
Indian Rupee gains 26 paise to 94.96 against the US Dollar, driven by robust domestic growth and significant portfolio inflows. Learn more.
The Indian rupee strengthened by 26 paise in early trade on Tuesday, reaching 94.96 against the US dollar. This appreciation was driven by robust domestic growth and substantial portfolio inflows.
- Rupee opened at 95.06 against the US dollar.
- Strengthened to 94.96, up 26 paise from previous close.
- Previous close: 95.22 on Monday, after a 21-paise increase.
- Dollar Index: slightly up at 99.46.
- Brent crude oil: trading higher at $91.06 per barrel.
Forex traders noted a strong near-term base established for the USD/INR pair between 95.10 and 95.20. MSCI-related inflows provided additional support to the currency’s performance.
Broader Market Context
Despite the rupee’s gains, domestic equities faced headwinds in early trade. Both Sensex and Nifty experienced declines as market sentiment remained mixed.
FII Activity and Economic Indicators
Foreign institutional investors (FIIs) remained net sellers, offloading a significant volume of equities on Monday. However, broader economic data painted a picture of resilience for India.
- FII equity offloading on Monday: Rs 7,985.88 crore.
- FPI August investments: around $3.1 billion, marking the best monthly inflow in 23 months.
- India’s Q1 (April-June) economic growth: 7.8%, exceeding expectations.
- Central government’s fiscal deficit for 2026-27 by end of July: 26.8% of the full-year target.
The rupee’s current trajectory reflects a combination of strong internal economic fundamentals and strategic capital flows, even as global commodity prices and equity markets present varied signals.