Politics · India Bureau
Rupee gains 5 paise against dollar on strong foreign inflows
The Indian rupee strengthened to 94.46 against the US dollar in early trading Friday, buoyed by rising foreign investment flows and improved market risk appetite. The currency has now appreciated for five consecutive sessions.
LSN India ·
The rupee opened at 94.53 against the US dollar at the interbank foreign exchange market before climbing to 94.46, a gain of 5 paise from Thursday's closing level of 94.51. The appreciation marks the fifth consecutive day of gains for the domestic currency, with a cumulative appreciation of 22 paise over the period.
Foreign exchange traders attributed the rupee's strength to robust capital inflows and proactive intervention by the Reserve Bank of India to support the currency. India recently mobilised a record USD 127.23 billion through foreign-currency deposits under a central bank programme designed to enhance the country's foreign exchange liquidity position.
Despite the positive momentum, analysts cautioned that further upside gains may face headwinds. Rising crude oil prices and geopolitical tensions between the United States and Iran could constrain the rupee's appreciation potential in coming sessions. Traders said the currency remains well-positioned for strength given underlying fundamentals, though external factors warrant close monitoring.