Rupee rises 7 paise to 93.70 against US dollar in early trade
The currency gained strength on Wednesday due to foreign fund inflows and lower crude oil prices.
The rupee appreciated 7 paise to 93.70 against the US dollar during early trade on Wednesday, according to reports by The Times of India, The New Indian Express and The Hindu.
The currency's rise was aided by the return of foreign capital, more favourable geopolitical conditions and lower prices for crude oil.
In the interbank foreign exchange market, the rupee opened at approximately 93.71 before reaching 93.70, marking an increase from its Monday close. Domestic markets were closed on Tuesday for Diwali Balipratipada.
CR Forex Advisors MD Amit Pabari stated that the positive momentum is driven by steady foreign capital inflows and softer crude prices. He noted that if these factors persist, the USD/INR could decline towards 93.50, with 93.00 being a key level to monitor.
Anindya Banerjee, Head of Commodity and Currency Research at Kotak NEO, said that while cheaper oil helps the rupee by lowering import bills, higher US yields and a stronger dollar create opposing pressure. He added that India's inflation data, due on Thursday, will be the next domestic policy signal.
Exchange data shows foreign institutional investors (FIIs) bought equities worth Rs 7,212.22 crore on Monday. Foreign investors have been net buyers in November, investing Rs 53,739 crore in the first nine days of the month.
