The Indian rupee appreciated by 14 paise to settle at ₹86.59 against the US dollar on Thursday, supported by steady inflows of foreign capital, easing crude oil prices, and a broadly weaker dollar in global markets.
After opening at ₹86.67 at the interbank foreign exchange market, the domestic currency touched an intraday high of ₹86.57 and a low of ₹86.71 before finally settling at ₹86.59 — up from the previous close of ₹86.73.
Currency dealers attributed the rupee’s recovery to renewed foreign institutional investment (FII) in domestic equities, with benchmark indices registering gains during the session. The BSE Sensex rose by 283 points, while the NSE Nifty advanced by 87 points, boosting investor sentiment and supporting the domestic currency.
In addition, global crude oil prices retreated, offering relief to India, a net importer of oil. Brent crude futures slipped below $81 per barrel, reducing pressure on India’s trade deficit and import bill — a factor that typically influences rupee movement.
“Lower crude oil prices and continued portfolio inflows helped the rupee appreciate modestly today. Market participants are also tracking upcoming US economic data, which could influence the dollar index,” said a senior forex analyst at a Mumbai-based brokerage.
The US dollar index, which measures the greenback against a basket of six major currencies, weakened slightly during the day, trading around 104.7, as investors awaited clarity on future interest rate moves from the US Federal Reserve. A softer dollar generally makes emerging market currencies like the rupee more attractive.
Traders remain cautiously optimistic about the rupee’s near-term trajectory, with some suggesting that the local unit may stay in a narrow range due to potential dollar demand from importers and the Reserve Bank of India’s (RBI) continued presence in the forex market to curb excess volatility.
Market participants are now eyeing the release of key US economic indicators and global central bank commentary for cues on future currency movements.
