Mumbai, November 7: The Indian rupee recorded its biggest single-day gain since October 12, strengthening 56 paise to close at 93.91 against the US dollar on Friday. The sharp recovery came amid strong foreign investment inflows, falling crude oil prices and a sustained rally in domestic equities.
The currency had settled at 94.47 against the greenback in the previous session. Friday’s appreciation of nearly 0.6 per cent made the rupee Asia’s best-performing currency for the day.
Foreign Inflows
Strong buying by foreign portfolio investors (FPIs) provided significant support to the domestic currency. Dealers reported heavy dollar selling by foreign banks acting on behalf of overseas investors.
The rupee also benefited from declining global crude oil prices, which eased concerns over India’s import costs and reduced demand for dollars.
The currency gained approximately 1.2 per cent during the week, marking a notable recovery after months of pressure.
RBI Intervention
Market participants indicated that the Reserve Bank of India (RBI) purchased dollars around the 93.88 level to prevent excessive appreciation and maintain stability in foreign exchange markets.
The rupee’s recovery followed earlier comments by RBI Governor Sanjay Malhotra, who had expressed confidence in India’s medium-term and long-term balance of payments outlook.
Despite the latest gains, the currency remains down 4.3 per cent in calendar year 2026 and 5.6 per cent over the past year.
Market Outlook
Analysts attributed the rally to improving global sentiment, easing geopolitical uncertainties and renewed foreign interest in Indian equities.
The shift away from artificial intelligence-linked global stocks also supported India’s equity market rally, strengthening demand for rupee-denominated assets.
Looking ahead, analysts expect the USD/INR pair to find support around 93.50, while resistance is seen near 94.30.
Continued foreign inflows and softer oil prices could support further appreciation, although RBI intervention and global dollar movements remain important factors influencing the currency’s direction.
