Rupee Strengthens 3 Paise vs USD on FII Inflows

The Indian rupee displayed mild strength against the US dollar on Wednesday, closing at 95.33. This marked a 3-paise appreciation from its previous close of 95.36 on Tuesday.

Foreign institutional investors (FIIs) continued to channel capital into Indian markets, contributing to the rupee’s positive movement. However, global crude oil prices exerted pressure on investor sentiment.

Key Market Drivers

• FIIs were net buyers of securities worth Rs 258.55 crore during Tuesday’s session.
• Brent crude oil traded near the $89 per barrel mark, indicating elevated global prices.

Domestic economic indicators also introduced a cautious stance among traders. India’s retail inflation saw a notable increase, primarily driven by persistent elevated food prices.

Inflationary Pressures

• Retail inflation in India rose to 4.45% (Provisional) in July 2026.
• This marks an increase from 4.38% (Final) recorded in June 2026.
• The latest reading signifies the sixth consecutive monthly increase in inflation.

On the global front, currency markets reacted to impending economic data releases. The New Zealand dollar weakened against the US dollar as traders awaited key data.

International Market Signals

• Traders awaited the release of the US CPI report for further clarity on the Federal Reserve’s future interest-rate trajectory.

The rupee ultimately concluded its trading day within a range, touching a high of 95.43 and a low of 95.24 against the dollar.