<a href="https://www.mid-day.com/business/business-news/article/rupee-rises-7-paise-to-9370-against-us-dollar-amid-fii-inflows-easing-crude-oil-prices-23659441" target="_blank" rel="none noopener">The rupee</a> traded in a narrow range and gained marginally by 7 paise to 94.05 against the US dollar in early trade on Friday, as the support from foreign fund inflows was negated by broad-based strength in the dollar.
Forex traders said the rupee is showing positive momentum, driven by consistent foreign investments, lower crude oil prices, and a favourable external environment.
However, strengthening of the American currency in the overseas market weighed on investors' sentiment.
In the interbank foreign exchange market, the rupee opened at around 94.07, then touched 94.05, up 7 paise from its previous closing level.
On Thursday, the rupee depreciated 41 paise to close at 94.12 against the US dollar.
"The external environment remains supportive of the rupee, backed by softer crude oil prices and renewed FII inflows. However, after appreciating sharply from 97.00 to around 94.00, a near-term pullback could push USD/INR towards 94.50&ndash;95.00.
"Such a move should be viewed as a dollar-selling opportunity, with the broader trend still favouring rupee appreciation towards 93," CR Forex Advisors MD Amit Pabari said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 103.15, lower by 0.02 per cent.
Brent crude, the global oil benchmark, was trading 0.37 per cent lower at USD 95.47 per barrel in futures trade.
<a href="https://www.mid-day.com/business/business-news/article/indias-retail-inflation-rises-to-609-per-cent-in-october-breaches-rbis-upper-limit-23659633" target="_blank" rel="none noopener">India's retail inflation surged to 6.09 per cent in October</a>, breaching the Reserve Bank of India's upper tolerance limit for the first time in two years and prompting economists to anticipate a policy rate hike by the RBI next month.
With inflation now above the upper tolerance band, markets are pricing in a cumulative 75-bps rate hike, comprising a 25-bps hike delivered in October 2026, followed by expectations of further 25-bps hikes each in December 2026 and February 2027, Pabari said.
"Expectations of consecutive rate hikes in December and February could provide additional support to the rupee by improving the attractiveness of domestic assets, encouraging foreign inflows and strengthening confidence in the RBI's commitment to currency stability," he added. On the domestic equity market front, Sensex tumbled 460 points to 81,441.17 in early trade, while the Nifty fell 179.05 points to 25,119.50.
<a href="https://www.mid-day.com/business/business-news/article/market-weekly-round-up-fiis-continue-to-be-net-buyers-purchase-equities-worth-rs-45960-crore-23658950" target="_blank" rel="none noopener">Foreign institutional investors (FIIs) purchased equities</a> worth Rs 7,830.60 crore on Thursday, according to exchange data.
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.

The Indian currency opened at around 94.07, then touched 94.05 against US dollar, up 7 paise from its previous closing level

Rupee rises 7 paise to 94.05 against US dollar amid FII inflows

Economists: Retail inflation may remain above 6 per cent for next few months; rate hikes likely

In the interbank foreign exchange market, the rupee opened at around 94.07, then touched 94.05, up 7 paise from its previous closing level. On Thursday, the rupee depreciated 41 paise to close at 94.12 against the US dollar

Rupee gains 7 paise to 94.05 against US dollar amid FII inflows

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