Rupee rises 14 paise to 94.61 against US dollar in early trade

On Wednesday, the Indian rupee gained 14 paise to trade at 94.61 against the US dollar in early trade, aided by declining crude oil prices, a weaker US currency and inflows of foreign funds. This positive sentiment was bolstered by gains in domestic equities, as investors awaited the results of the US midterm elections. The rupee opened at 94.61 and reached a high of 94.50 before settling at 94.61, marking a 14 paise increase from the previous day's close.

On Tuesday, the Indian currency had risen 9 paise to close at 94.75 against the greenback. Meanwhile, the dollar index, which measures the dollar's strength against a basket of six currencies, fell by 0.54 per cent to 101.17. US Treasury yields also decreased as investors anticipated a favorable outcome for the Democratic Party in the midterm elections.

Meanwhile, global oil prices, measured by Brent crude, slipped by 0.49 per cent to $103.09 per barrel despite ongoing geopolitical tensions. On the domestic stock market, the Sensex rose 435.10 points, or 0.57 per cent, to 77,352.95, while the Nifty index climbed 115.90 points, or 0.49 per cent, to 23,925.10. Both indices had posted gains of over 1.5 per cent in the previous trading session.

Foreign Institutional Investors (FIIs) continued to show strong buying interest, accumulating equities worth ₹6,836.81 crore for the third consecutive day.