The rupee rises 7 paise to 94.05 against the US dollar in early trade on Friday. Foreign fund inflows and lower crude oil prices supported the currency. However, broad-based strength in the US dollar limited its gains.
The Indian rupee opened at around 94.07 in the interbank foreign exchange market before touching 94.05. This marked a 7-paise gain from its previous close. On Thursday, the currency had depreciated 41 paise to settle at 94.12 against the dollar.
Forex traders said consistent foreign investments, softer crude oil prices and a favorable external environment have supported the rupee. However, the strengthening US dollar in overseas markets continued to weigh on investor sentiment.
Key Highlights
- The rupee gained 7 paise to trade at 94.05 against the US dollar.
- FIIs purchased equities worth Rs 7,830.60 crore on Thursday.
- October retail inflation rose to 6.09%, crossing the RBI's upper tolerance limit of 6%.
FII Inflows and Lower Crude Prices Support Rupee
According to CR Forex Advisors Managing Director Amit Pabari, the external environment remains supportive of the rupee, backed by softer crude oil prices and renewed foreign institutional investor (FII) inflows.
He noted that the currency had appreciated sharply from around 97 to nearly 94 against the dollar. However, a near-term correction could push the USD/INR exchange rate towards 94.50–95.00.
Also Read: How India's Life Insurance Industry Is Embedding AI to Improve Customer Experience
Pabari said such a movement could offer an opportunity to sell dollars, with the broader trend still favoring rupee appreciation towards 93.
Meanwhile, the dollar index, which measures the US dollar against six major currencies, stood at 103.15, down 0.02%. Brent crude, the global oil benchmark, declined 0.37% to USD 95.47 per barrel in futures trade.
Inflation and RBI Rate Hike Expectations in Focus
India's retail inflation climbed to 6.09% in October, crossing the Reserve Bank of India's upper tolerance limit for the first time in two years. The latest reading has raised expectations of another policy rate hike in December.
According to Pabari, markets are pricing in cumulative rate hikes of 75 basis points. This includes the 25-basis-point increase delivered in October 2026, followed by expectations of further 25-basis-point hikes in December 2026 and February 2027.
He added that higher interest rates could improve the attractiveness of domestic assets, encourage foreign investments and support currency stability.
Meanwhile, domestic equity markets remained under pressure. The Sensex fell 460 points to 81,441.17, while the Nifty declined 179.05 points to 25,119.50 in early trade.
Foreign institutional investors purchased equities worth Rs 7,830.60 crore on Thursday, according to exchange data. These inflows provided support as the rupee rises against the US dollar. Market figures reflect the early trade update for Friday, November 13, 2026.
