MUMBAI (Economy India): The Indian rupee strengthened by 17 paise to close at 90.61 (provisional) against the US dollar on Thursday, supported by steady foreign fund inflows and comfortable liquidity conditions in the domestic banking system.
At the interbank foreign exchange market, the rupee opened on a positive note at 90.55 against the greenback. During the session, it touched an intraday high of 90.40 and a low of 90.65, before settling higher compared to the previous close.
Forex traders said that renewed foreign portfolio investor (FPI) interest, though moderate in scale, helped improve overall market sentiment. The inflows acted as a psychological boost for the domestic currency amid lingering global uncertainties.
Market participants also pointed out that the Reserve Bank of India (RBI) has been quietly maintaining ample liquidity in the banking system, which has helped stabilize the rupee despite volatility in global currency markets.
“The RBI’s calibrated approach to liquidity management has ensured that funding conditions remain comfortable, supporting the rupee at lower levels,” a forex dealer said.
On Wednesday, the rupee had closed at 90.78, pressured by concerns over global interest rate trajectories and cautious investor positioning ahead of key macroeconomic cues.
Meanwhile, the US dollar index showed limited movement as investors awaited further signals from the US Federal Reserve on interest rate cuts. Crude oil prices also remained range-bound, offering some relief to emerging market currencies, including the rupee.
Analysts believe that in the near term, the rupee is likely to trade in a narrow range, with foreign fund flows, global risk sentiment and RBI’s intervention strategy remaining key drivers.
(Economy India)
