Rupee Edges Higher by 6 Paise to ₹85.51, Amid Lower Crude and Positive FII Inflows

The Indian Rupee gained by 6 paise, opening at ₹85.51 against the dollar today. The rupee's rise in initial trade was mainly supported by robust FII inflows and a fall in global crude oil prices.

Rupee Strengthens on Strong FII Equity Inflows

One of the key drivers of the Rupee's appreciation was the strong buying by Foreign Institutional Investors. On a net basis, FIIs bought equities worth ₹2,301.87 crore on Tuesday, as per exchange data. Such a huge inflow of foreign funds into Indian equity markets tends to strengthen the rupee.

Brent Crude Edges Lower, Dollar Index Registers Minor Uptick

At the same time, the world oil benchmark, Brent crude, fell marginally by 0.07% to $66.82 a barrel in futures. For an economy like India that is dependent on imports, a fall in global crude oil prices usually eases import bills, thus creating a favourable environment for the rupee.

In the wider foreign exchange market, the dollar index measuring the US currency's strength relative to a basket of six major currencies increased marginally 0.05 per cent to 99.14.

Rupee and Equities Edge Up Amid Positive Market Sentiment

Alongside the rupee appreciation, both major domestic equity indices posted small gains in early Wednesday trading. The 30-share BSE Sensex rose by 93.43 points, or 0.11 per cent, to 82,485.15. Likewise, the Nifty index rose by 19.40 points, or 0.08 per cent, to close at 25,123.65. These simultaneous gains in the equity market further reflect a positive mood in the domestic financial environment.

The gains of the Rupee are a direct consequence of positive internal capital flows and supportive external commodity price dynamics. Although external economic forces remain instrumental in dictating market conduct, the near-term fortunes of the Indian currency are one of guarded stability, supported by consistent foreign investor appetite.

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