Rupee Strengthens to 94.96 Against US Dollar Amid Robust Domestic Growth
The Indian rupee strengthened to 94.96 against the US dollar on September 1, marking a gain of 26 paise from its previous close. The rupee's increase is attributed to robust domestic growth and contained fiscal slippage.
According to forex traders, the USD/INR pair has found a strong near-term base around 95.10-95.20. MSCI-related inflows have provided temporary support, which helped the rupee recover from its initial losses.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.46, higher by 0.03%. Brent crude, the global oil benchmark, rose to USD 91.06 per barrel after US President Donald Trump warned of increased tensions with Iran.
India's economy grew at a faster-than-expected 7.8% in the April-June quarter, showing resilience despite concerns about global economic uncertainty. The central government's fiscal deficit for 2026-27 stood at 26.8% of the full-year target at the end of July.