INR settles marginally higher; All eyes on upcoming Union Budget

The Indian rupee pared initial losses and settled for the day higher by 3 paise at 86.59 (provisional) against the US dollar, as the support from positive domestic equities was negated by unabated foreign fund outflows and month-end dollar demand. Indian shares ended higher for a fourth straight session on Friday, with optimism around upcoming Union Budget and expectations for a rate cut by RBI next week helping underpin sentiment. Investors also reacted positively to the Economic Survey 2025 tabled in the Parliament today that pegged GDP growth at 6.3-6.8 percent for FY 26. The Economic Survey highlighted many upsides to domestic investment, output growth and disinflation in FY26 but cautioned about equally strong, prominently extraneous, downsides. The benchmark S&P/BSE Sensex ended the session up 740.76 points, or 0.97 percent, at 77,500.57, after having hit a high of 77,605.96 earlier. Similarly, the broader NSE Nifty index hit an intraday high of 23,546.80 before paring some gains to close at 23,508.40, up 258.90 points, or 1.11 percent, from its previous close. Rupee continued to face pressure due to sustained foreign fund outflows and the broad strength of the American currency in the overseas markets due to unabated dollar demand from oil importers and weak risk appetite. At the interbank foreign exchange, the rupee opened on a weak note at 86.63 and touched a high of 86.59 and a low of 86.65 against the American currency during the session.

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