Indian rupee finds its footing as oil worries cool, traders watch flow momentum

Business Recorder reported that the Indian rupee gained 0.2% on Thursday, closing at 94.4750 dollar, its strongest finish in two weeks. The move came as oil slipped below $100 per barrel amid hopes that the risk of a wider Iran conflict had eased after Republicans lost control of the US Congress.

Lower energy costs also lifted Indian shares to their strongest session in seven months and brought bond yields to a more than one-month low, while the rupee’s advance was modest against broader Asian currency gains. Foreign investors made net purchases of $769.65 million in Indian stocks on Wednesday, one of their largest daily buying totals since October 2025, bringing the month’s net inflow to $1.57 billion. Traders are watching whether these inflows persist, as sustained buying could support the rupee and allow India’s central bank to let some dollar sales in the non-deliverable forward market expire without renewal.