Mumbai, Nov 5 The rupee settled 5 paise higher at 94.41 against the US dollar on Thursday, aided by lower crude oil prices and robust foreign fund inflows.
Forex traders said the Indian rupee is showing signs of near-term stabilisation after recovering sharply against the US dollar in previous sessions. A positive trend in domestic equities further boosted investor sentiment.
At the interbank foreign exchange market, the rupee opened at 94.36 and fell to a low of 94.57 in intraday trade. The unit recouped the losses and hit the day’s high of 94.32 before settling at 94.41 against the greenback, up 5 paise from its previous close.
On Wednesday, the rupee stayed firm for the second straight session to settle 29 paise higher at 94.46 against the US dollar.
“The drivers favour the rupee: foreign portfolio inflows can pick up as India stands out from the AI unwind, political uncertainty in the US can weigh on the dollar, and India’s import bill falls with every dollar off crude.
“The RBI’s calibrated management, with the repo rate at 5.50 per cent and reserves of about USD 720 billion, has kept the currency orderly through the worst of the oil shock and now gives it room to appreciate without disorder,” Anindya Banerjee, Head of Commodity and Currency Research, Kotak NEO.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 101.50, lower by 0.06 per cent.
Brent crude, the global oil benchmark, was trading higher by 1.38 per cent at USD 95.93 per barrel in futures trade, after receding from above USD 105 per barrel.
On the domestic equity market front, Sensex jumped 2,008.61 points to end at 79,310.01, while the Nifty surged 576 points to 24,536.60.
Foreign Institutional Investors (FIIs) were net buyers on Thursday, purchasing equities worth Rs 14,974.68 crore, according to exchange data.
(PTI News)
