Rupee Extends Gains Amid Strong Inflows, Weaker Dollar
The Indian rupee opened at 94.46 against the US dollar on Friday, September 4, extending its recent gains.
This marks the fifth consecutive session of strengthening for the rupee.
Strong foreign currency inflows and a weaker dollar are supporting the domestic currency.
The Reserve Bank of India data shows that India mobilised $127.23 billion through FCNR(B) deposits under a special central bank programme aimed at strengthening foreign exchange liquidity.
Including overseas foreign currency borrowings and external commercial borrowings, total inflows under the measures stood at $136.377 billion.
The rupee has also benefited from foreign portfolio investor buying, with FPIs purchasing Indian equities worth ₹2,345.87 crore on a net basis on Thursday.
A weaker US dollar has provided another tailwind, with the dollar index trading around 99.22, down 0.38%.
However, elevated crude oil prices remain a key risk for the rupee, with Brent crude trading at around $96.44 a barrel, up 0.85%, amid renewed tensions between the US and Iran and concerns over possible disruption to oil flows through the Strait of Hormuz.