Rupee strengthens against dollar to 89.45 on FII inflows, RBI actions

The USD-INR pair has appreciated by about 2% from its recent lows but is still 5% down on year-on-year basis, analysts say.

The Indian Rupee continued to strengthen against the US Dollar on Monday, supported by foreign buying in the world's fifth largest stock market.

The rupee has fallen 5.3% against the US dollar so far this year, putting it on track for its steepest annual decline since 2022.(Reuters)

What's the rupee rate today?

The rupee opened at 89.53 against the US dollar, then strengthened further to 89.45. That's a gain of 22 paise over previous close of 89.67. The Reserve Bank of India has reportedly sold dollars via state-run banks to prop up the rupee in recent trading sessions.

• The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04% higher at 98.63.
• The brent crude, the global oil benchmark, was trading higher by 0.83% at $60.97 per barrel in futures trade.
• FII inflows stood at ₹1,830.89 crore on Friday, according to exchange data.
• India's forex reserves jumped $1.68 billion to $688.94 billion in the week through 12 December, according to RBI data.

Up but still Down

The USD-INR pair has appreciated by about 2% from its recent lows but is still 5% down on year-on-year basis, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.

“The broader depreciation trend is intact despite near-term consolidation,” he told the Press Trust of India.