Indian currency closes at 95.76 per US dollar as strong equities, foreign inflows and weak greenback lift sentiment
Mumbai (Economy India): The Indian rupee strengthened for the fourth consecutive trading session, appreciating 6 paise to close at 95.76 against the US dollar on Wednesday, supported by robust domestic equity markets, lower global crude oil prices and continued foreign capital inflows.
The local currency also benefited from a weaker US dollar ahead of the US Federal Reserve’s monetary policy decision, boosting investor sentiment in emerging markets.
Rupee Trades in a Narrow Range
In the interbank foreign exchange market, the rupee:
- Opened: 95.70 per US dollar
- Touched Intraday Low: 95.80
- Hit Intraday High: 95.48
- Closed: 95.76
The currency ended the day 6 paise stronger than its previous close, extending its positive momentum.
Factors Supporting the Rupee
According to forex traders, several factors contributed to the rupee’s appreciation:
- 📉 Decline in global crude oil prices
- 📈 Strong buying in domestic equity markets
- 💵 Continued foreign capital inflows
- 🇺🇸 Weakness in the US dollar ahead of the Federal Reserve meeting
Lower crude prices generally reduce India’s import bill, providing support to the domestic currency.
Market Outlook
Currency dealers expect investors to closely monitor the US Federal Reserve’s policy announcement, global bond yields and foreign investment flows for further direction in the rupee.
Movements in crude oil prices and equity markets are also expected to influence the Indian currency in the coming sessions.
(Economy India)
