Rupee Gains 15 Paise Against Dollar as RBI Selling and FPI Inflows Support

The Indian rupee strengthened against the US dollar on Friday, rising 15 paise to settle at 95.35 (provisional) after tracking foreign capital inflows and support from the Reserve Bank of India.

The rupee had surged 26 paise to close at 95.50 against the US dollar on Thursday, marking its fifth straight session of gains.

However, higher global crude oil prices and a stronger greenback capped sharper gains in the local unit, while elevated tensions in West Asia kept markets on edge, according to forex traders.

V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd, attributed the rupee's stability and strength to sustained RBI dollar selling and FPI inflows. During the last three days, foreign institutional investors bought equities worth Rs 7,360 crore, improving sentiments for the domestic currency.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, expects the rupee to trade with a slight positive bias on a soft dollar and dovish Fed. Positive global markets and improved foreign inflows may also support the rupee, but renewed geopolitical tensions between the US and Iran could cap sharp upside.