Mumbai: The Indian rupee strengthened sharply against the US dollar on Wednesday, October 21, gaining 48 paise to close at 94.43 (provisional). Foreign currency inflows linked to the Jio Platforms IPO and support from the Reserve Bank of India (RBI) helped the domestic currency reach a six-week high.
Rupee Vs Dollar Closing Rate Today
At the interbank foreign exchange market, the rupee opened at 94.78 against the US dollar. During intraday trading, the currency touched a high of 94.41 and a low of 94.82 before settling at 94.43, compared with Monday's closing level of 94.91. Forex markets remained closed on Tuesday due to Dussehra.
Jio IPO Inflows Boost Indian Rupee
The Rs 30,213 crore Jio Platforms IPO, which opened for subscription on Wednesday, contributed to foreign currency inflows. Foreign investors typically convert dollars into rupees when participating in Indian public offerings, increasing dollar supply in the domestic forex market. Gaurav Garg, Head of Research at Lemonn, said RBI measures to manage dollar demand and currency volatility also supported the rupee.
Crude Oil Prices Remain A Concern
Despite the recovery, rising crude oil prices and weak domestic equity markets limited further gains. Brent crude futures climbed 1.99 per cent to USD 110.96 per barrel amid concerns over Middle East supply disruptions. Meanwhile, the dollar index rose 0.07 per cent to 101.59.
Sensex And Nifty Close Lower
Indian equity benchmarks ended Wednesday's session in negative territory. The Sensex declined 143.21 points to 73,709.69, while the Nifty 50 slipped 77.60 points to 22,811.35. Foreign institutional investors sold equities worth Rs 1,148.64 crore on Monday.
Rupee Outlook And Key Levels
Anuj Choudhary of Mirae Asset Sharekhan expects the USD-INR pair to trade between 94.20 and 94.80. Analysts believe continued IPO inflows, RBI support and global dollar movements will determine the rupee's near-term direction.
