MUMBAI, India – The Indian rupee rose five paise against the U.S. dollar in early trade on Wednesday, supported by foreign fund inflows and a correction in crude oil prices.
At 10:15 a.m. IST, the rupee was trading at 83.15 against the dollar, up from 83.20 in the previous session.
“The rupee has opened stronger today on account of foreign fund inflows and a correction in crude oil prices,” said a forex dealer.
Foreign institutional investors (FIIs) bought a net ₹8,855 crore of Indian equities on Tuesday, according to provisional data from the National Securities Depository Limited (NSDL).
Crude oil prices fell on Wednesday morning, with Brent crude futures down 0.2% at $92.50 a barrel. This is a positive development for the rupee, as India is a major importer of crude oil.
However, analysts cautioned that the rupee could face headwinds in the coming days due to concerns over rising U.S. interest rates and a potential global economic slowdown.
“There are still some uncertainties in the global economy, and this could weigh on the rupee in the near term,” said the forex dealer.
The rupee has been under pressure in recent months due to a combination of factors, including the widening trade deficit, the ongoing war in Ukraine, and rising global inflation.
However, the recent foreign fund inflows and the correction in crude oil prices have provided some support to the currency.
Analysts believe that the rupee will continue to be volatile in the near term, but they expect it to trade in a range of 82.50 to 83.50 against the dollar.