Rupee Strengthens To 94.61 Against US Dollar As Global Currency Trends Turn Favourable, Softer Crude Oil Prices And ₹6,836 Crore FII Buying Provide Fresh Support

Mumbai: The Indian rupee strengthened by 14 paise to 94.61 against the US dollar in early trade on Wednesday, supported by declining crude oil prices, a weaker greenback and continued foreign institutional investor (FII) inflows.

Positive momentum in domestic equities also supported the currency, while investors remained cautious ahead of the US midterm election results.

Rupee Movement

At the interbank foreign exchange market, the rupee opened at 94.61 against the US dollar. The domestic currency subsequently strengthened to 94.50 before surrendering some gains to trade at 94.61, marking a 14-paise improvement from Tuesday's closing level. In the previous session, the rupee had appreciated by 9 paise to settle at 94.75.

Dollar Weakness

The US dollar weakened against major global currencies, providing additional support to the rupee. The dollar index, which measures the greenback against six leading currencies, declined 0.54 per cent to 101.17. US Treasury yields also softened as investors assessed expectations surrounding the American midterm elections.

Crude Prices

Lower international crude oil prices helped improve sentiment towards the Indian currency. Brent crude, the global oil benchmark, declined 0.49 per cent to $103.09 per barrel. As India depends heavily on imported crude oil, softer energy prices can ease pressure on the country's import bill and demand for dollars. However, geopolitical uncertainties continued to influence global commodity markets.

Equity Rally

Indian equity benchmarks extended their upward movement during early trading. The BSE Sensex surged 435.10 points, or 0.57 per cent, to 77,352.95. The NSE Nifty climbed 115.90 points, or 0.49 per cent, to 23,925.10. Both indices had gained more than 1.5 per cent in the previous session.

Foreign Inflows

Foreign institutional investors remained net buyers for the third consecutive session on Tuesday. According to exchange data, FIIs purchased Indian equities worth ₹6,836.81 crore. Continued foreign buying, global dollar movements, crude oil prices and US election developments are expected to remain important factors influencing the rupee's near-term direction.