Rupee Gains Ground As Crude Oil Prices Ease, Indian Currency Strengthens 12 Paise To 94.72 Against US Dollar With ₹3,114 Crore FII Inflows Lending Support

Mumbai: The Indian rupee strengthened by 12 paise to 94.72 against the US dollar in early trading on Tuesday, supported by declining crude oil prices and renewed foreign institutional investor (FII) inflows into domestic equities. However, a firm American currency and uncertainty surrounding the US midterm elections limited the rupee's gains, according to forex traders.

Rupee Movement

At the interbank foreign exchange market, the rupee opened at 94.68 against the US dollar and strengthened to an intraday high of 94.60. The domestic currency later traded at 94.72, registering a gain of 12 paise from Monday's closing level of 94.84. On Monday, the rupee had depreciated by 8 paise after gaining 50 paise in the preceding trading session.

Dollar Pressure

The US dollar remained firm against major global currencies, restricting further appreciation in the Indian rupee. The dollar index, which measures the greenback against six leading currencies, increased 0.03 per cent to 101.65. Forex traders said investors remained cautious ahead of the US midterm elections and their possible implications for global financial markets.

Crude Relief

International benchmark Brent crude traded marginally lower at $104.76 per barrel, declining 0.01 per cent in futures trading. Analysts linked the recent easing in oil prices to renewed diplomatic discussions involving Iranian and Qatari officials. Lower crude oil prices generally support India's currency by reducing pressure on the country's energy import payments.

FII Inflows

Foreign institutional investors continued buying Indian equities for the second consecutive session on Monday. According to exchange data, FIIs purchased shares worth ₹3,114.68 crore on a net basis. Renewed foreign investment provided additional support to domestic market sentiment.

Stock Market

Indian equity benchmarks also opened higher on Tuesday. The BSE Sensex surged 551.77 points, or 0.73 per cent, to 76,244.55 during early trading. Meanwhile, the NSE Nifty advanced 129.60 points, or 0.55 per cent, to 23,570.40. Market participants will continue monitoring crude oil movements, foreign investment flows and global currency trends for further direction.