Rupee Gains 40 Paise to 87.68 Against Dollar on RBI Support, Softer Greenback
Mumbai: The rupee strengthened by 40 paise to 87.68 against the US dollar in early trade on Thursday, aided by suspected central bank intervention and a weaker dollar index.
Forex traders attributed the currency’s upward momentum to multiple factors, including firm domestic equities, lower crude oil prices, and renewed foreign fund inflows.
At the interbank foreign exchange market, the rupee opened at 87.76 and quickly advanced to an early high of 87.68 against the greenback, marking a 40 paise gain from its previous close.
On Wednesday, the domestic currency had rallied sharply by 73 paise to settle at 88.08 per dollar, its biggest single-day gain in nearly four months. The recovery was largely driven by improving global risk sentiment, optimism surrounding India-US trade talks, and likely intervention by the Reserve Bank of India (RBI).
“RBI ensured that the rupee opened higher, curbing speculative trades and preventing it from breaching the 88.39 mark on Wednesday,” said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
He added that the rupee’s positive opening and expected trading range of 87.30–88.00 reflect the RBI’s intent to limit volatility and discourage speculation.
Meanwhile, the dollar index, which tracks the greenback against six major currencies, fell 0.28 per cent to 98.51. Brent crude futures rose 0.74 per cent to USD 62.37 per barrel.
In domestic markets, the Sensex surged 407.67 points to 83,013.10 in early trade, while the Nifty climbed 104 points to 25,427.55.
Foreign Institutional Investors (FIIs) were net buyers on Wednesday, purchasing equities worth ₹68.64 crore, according to exchange data.
On the trade front, India’s exports rose 6.74 per cent to USD 36.38 billion in September, while imports jumped 16.6 per cent, pushing the trade deficit to USD 31.15 billion — the widest in over a year.
