Rupee Surges 77 Paise to Settle at 95.08 Against US Dollar Amid Foreign Inflows

Mumbai: The Indian rupee recorded a substantial gain on Friday, surging by 77 paise to finish at 95.08 against the US dollar, boosted by a softening greenback and strong foreign fund inflows into domestic equities.

Forex traders noted that a positive trend in local stock markets and lower crude oil prices further supported the domestic currency's upward trajectory. At the interbank foreign exchange market, the local unit opened strong and touched an intra-day high before settling significantly higher compared to its previous close.

Key Market Drivers

• Weakening Dollar: The US dollar index fell against a basket of six major currencies, easing pressure on emerging market forex.

• Equity Inflows: Sustained buying by Foreign Portfolio Investors (FPIs) provided strong underlying support.

• Crude Relief: A marginal dip in global Brent crude benchmarks helped reduce India's import bill anxieties.

Market analysts attribute this sharp recovery to shifting global monetary sentiments and robust macroeconomic data coming out of the domestic front. However, experts caution that volatile geopolitical factors and upcoming central bank policy decisions across major economies could keep the currency markets fluctuating in the short term.

Also Read: Neymar Targets Ultimate Glory in Global Showpiece as Brazil Chase Elusive Sixth Title Under Carlo Ancelotti