Indian rupee touches strongest since April as foreign inflows offset firm dollar

Business Recorder reported on Wednesday that the Indian rupee climbed to its firmest point since April, despite strength in the US dollar. It closed at 93.69 per dollar, gaining 0.2% during the session after reaching 93.6350. The currency has rebounded from its May record low of 96.96 and is now down about 4% so far this year.

Traders cited foreign purchases of Indian shares and supportive activity in the non-deliverable forward market as factors helping the rupee. Overseas investors have bought nearly $6 billion of Indian equities in November, their largest monthly inflow since September 2024. That demand has drawn more attention than the dollar’s support from strong US inflation figures and hawkish Federal Reserve remarks, with markets pricing in a 25-basis-point December rate increase and a smaller possibility of a 50-basis-point move.

Investors will next assess India’s October inflation report, scheduled for Thursday. Economists surveyed by Reuters expect annual inflation to reach 5.93%, compared with 5.54% in September.