Revival in foreign flows to back Indian rupee, dollar strength offers resistance

Business Recorder reported that the Indian rupee was expected to begin Thursday’s trading little changed, in a range of 93.68 to 93.74 per dollar. It had finished Wednesday at 93.69, its strongest close since April. A $1.34 billion purchase of Indian shares by overseas investors on Wednesday lifted month-to-date inflows to just below $8 billion.

The renewed inflows have supported the rupee, while the US dollar’s advance to a one-month high has limited gains. The report linked the shift in investor funds to unease about possible tighter US limits on AI data-centre construction, alongside a move away from semiconductor-heavy markets. Brent crude was near $92 a barrel, down from $118 less than two weeks earlier, while expectations of a Federal Reserve rate increase were supporting the dollar after stronger-than-expected October inflation data and hawkish remarks by US officials.