Indian Rupee gains 30 paise; Ends at 85.38/$ on FII inflows, weak dollar

Indian Rupee ended the week on a strong note, gaining for the fourth consecutive session as renewed foreign inflows supported the currency amid dollar weakness. 

 

The domestic currency ended 30 paise stronger at 85.38 against the greenback, after closing at 85.68 on Wednesday, according to Bloomberg data. The currency has gained nearly ₹1.31 in the last four sessions, with the markets shut on Friday on account of Good Friday. 

 

Meanwhile, foreign institutional investors (FIIs) snapped a nine-day selling streak on April 15, Tuesday, to buy domestic equities worth ₹6,065.78 crore, marking the third-largest single-day buying this year. On Wednesday, FIIs continued buying equities for a second straight day, investing ₹3,936.4 crore.   The dollar has taken a lasting beating as US has threatened, imposed and then postponed massive tariffs except against China, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, noted. "Markets to keep a close watch on RBI who seems to be buying dollars to curb rupees rise." 

 

 

This rise in the Rupee has been supported by positive domestic economic data and the global shift in sentiment following the US actions to slow down China’s growth, according to Amit Pabari, managing director at CR Forex Advisors. As a result, India is becoming a more attractive destination for foreign institutional investors, he said.

 

The dollar index — a measure of the value of the US dollar relative to a basket of foreign currencies — was up 0.11 per cent to 99.49, the lowest since April 2022. The dollar index will likely see a short-term pullback to the 101.50–102 range, driven by the hawkish statements from the Federal Reserve, Pabari added. 

 

Crude oil rose for a second day as the US vowed maximum pressure to disrupt Iran's supply chain.  Brent crude oil was up 0.88 per cent to $66.43 per barrel, while WTI crude was up 1.07 per cent at 63.14 per barrel as of 3:45 PM IST.