Rupee gained 14 paise to close at 94.59 against the dollar, extending its rally to five sessions as record FCNR(B) deposits and strong FII inflows offered support.

Rupee Finds Firm Footing |

Mumbai: The Indian rupee strengthened for the fifth consecutive session on Thursday, gaining 14 paise to close provisionally at 94.59 against the US dollar, supported by record FCNR(B) deposits and strong foreign institutional investor inflows.

At the interbank foreign exchange market, the rupee opened at 94.30 and touched an intraday high of 94.26 before settling at 94.59. It had closed at 94.73 on Wednesday after gaining 22 paise.

Record FCNR(B) Inflows Lift Rupee

India mobilised a record $127.23 billion through FCNR(B) deposits under the Reserve Bank of India’s special programme aimed at strengthening foreign exchange liquidity.

`;

Including overseas foreign-currency borrowings and external commercial borrowings, total inflows reached $136.377 billion, RBI data showed.

“Indian rupee rose sharply amid huge FCNR deposit inflows and FII buying. Softening of the US dollar and US treasury yields amid sharp appreciation in the Yen also supported the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan.

He expects the rupee-dollar exchange rate to retain a positive bias amid improving foreign inflows and stronger global risk appetite.

Oil Prices Remain a Risk

However, elevated crude oil prices and any fresh escalation in US-Iran tensions could limit further rupee appreciation.

Brent crude climbed 0.85% to $96.44 per barrel amid concerns over potential disruptions to oil flows through the Strait of Hormuz.

Meanwhile, the dollar index slipped 0.38% to 99.22.

Domestic equities ended lower, with the Sensex falling 417.49 points to 76,152.86 and the Nifty declining 41 points to 23,873.45.

Foreign institutional investors bought equities worth Rs 6,688.37 crore on Wednesday.

Add As a

Trusted Source