The Indian rupee has faced pressure from global market changes and foreign investment movements. However, recent improvements in investor confidence and changes in crude oil prices have offered some support to the currency.
The Indian rupee gained 7 paise to reach 93.70 against the US dollar in early trade on Wednesday, November 11, according to forex market data.
The rise was supported by foreign investment inflows, softer crude oil prices and improving global sentiment. Forex traders said foreign investors were gradually returning to Indian markets after two months of major withdrawals.
Foreign Institutional Investors (FIIs) purchased Indian equities worth ₹7,212.22 crore on Monday. They also invested a total of ₹53,739 crore during the first nine days of November.
The rupee had gained 21 paise to close at 93.77 on Monday. Domestic financial markets remained closed on Tuesday for Diwali Balipratipada.
Meanwhile, market experts said upcoming Indian inflation data would be important for investors. Changes in crude oil prices and the strength of the US dollar could also influence the rupee’s movement.
