Rupee Reaches Two-Month High on Robust Growth, RBI Intervention

The Indian rupee strengthened by 28 paise to settle at nearly two-month high of 94.94 against the US dollar on Tuesday, driven by robust domestic growth and controlled fiscal slippage.

Forex traders pointed out that recent MSCI-linked inflows are providing temporary support to the rupee. Some analysts also suggested that the Reserve Bank of India (RBI) may have intervened to bolster the domestic currency.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, noted that 'The Indian rupee gained on possible intervention by the RBI and upbeat macroeconomic data. However, weak domestic markets and a surge in crude oil prices capped sharp gains.'

Choudhary forecasted that the rupee may trade with a slight negative bias amid rising crude oil prices due to renewed geopolitical tensions between the US and Iran.