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 experienced a 14-paise rise to 94.61 against the US dollar in early trading on Wednesday, buoyed by falling crude oil prices, a weaker greenback, and ongoing foreign institutional investor (FII) inflows. Domestic stocks also exhibited positive momentum, while investors maintained a cautious stance in anticipation of the US midterm election outcomes.

At the interbank foreign exchange market, the rupee opened at 94.61 against the US dollar. Over the course of the day, the domestic currency surged to 94.50 before encountering some losses and closing at 94.61, marking a 14-paise gain from Tuesday's closing level. In the previous session, the rupee had managed to appreciate by 9 paise, settling at 94.75.

The US dollar experienced a decline against major global currencies, further bolstering the rupee. The dollar index, which represents the greenback's performance against six leading currencies, fell by 0.54 percent to 101.17. US Treasury yields softened as investors contemplated expectations surrounding the American midterm elections.

Lower international crude oil prices bolstered sentiment for the Indian currency. Brent crude, the global oil benchmark, slipped 0.49 percent to $103.09 per barrel. India's heavy reliance on imported crude oil means that softer energy prices can alleviate pressure on the nation's import bill and lessen the demand for dollars. However, geopolitical uncertainties continue to sway global commodity markets.

Foreign institutional investors continued to sell for the 10th consecutive week despite a sharp decline in outflows. Meanwhile, the Nifty fell by 2.4 percent. Despite these developments, the Indian equity benchmarks witnessed an upward trend during early trading, with the BSE Sensex climbing 435.10 points, or 0.57 percent, to 77,352.95. The NSE Nifty climbed 115.90 points, or 0.49 percent, to 23,925.10. Both indices had recorded gains of more than 1.5 percent in the previous session.