Rupee Sees Significant Gain as Domestic Growth and Inflows Boost Value

The Indian rupee has seen a boost in value against the US dollar, rising by 26 paise to trade at 94.96 per USD on Tuesday morning.

This gain is attributed to robust domestic growth, contained fiscal slippage, and portfolio-related inflows, according to Forex traders.

The USD/INR pair appears to have found a strong near-term base around 95.10-95.20, with MSCI-related inflows providing temporary support.

Despite the rupee's gain, foreign institutional investors (FPIs) offloaded equities worth Rs 7,985.88 crore on a net basis on Monday, following their strongest monthly inflow in 23 months of USD 3.1 billion in August.