Rupee hits 7-month high on FPI inflows, lower oil prices
New Delhi, Nov 11
The Indian rupee strengthened to its strongest level since April on Wednesday, supported by strong foreign portfolio investor inflows, softer crude oil prices and bullish positioning in forward markets.
Rupee rose 0.2 per cent during the session to close at 93.69 against the US dollar after touching an intraday high of 93.63, marking a sharp reversal from May's all-time low of 96.96-a level the currency threatened to breach again just last month.
The rupee is down roughly 4 per cent year-to-date, effectively halving the losses logged at its weakest point earlier in the year. USD-INR encounters resistance at 94.10, with support at 93.50 over the near term, according to market participants, the report from NDTV Profit said.
Analysts said Indian rupee gained ground also due to the absence of intervention from the central bank amid prevailing risk-on sentiment but a rebound in the USD following Tuesday's inflation figures weighed on the local currency.
US interest rates weighed on emerging-market currencies, but a resurgence in overseas capital revived domestic sentiment. Foreign institutional investors have injected nearly $6 billion into Indian equities in November alone-marking their largest monthly deployment since September 2024.
A recent report said that Indian rupee could reach 100 against the US dollar by June 2027 despite recent stability, adding that slowdown in the global artificial intelligence investment cycle and a reversal of recent foreign portfolio investor outflows could redirect global financial savings towards India.
— IANS
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