MUMBAI, Feb 18: The Indian rupee gained 4 paise to close at 90.68 against the US dollar on Wednesday, supported by foreign fund inflows and positive momentum in domestic equity markets. At the interbank forex, the rupee opened at 90.60 and traded within a narrow range of 90.59–90.71 before settling higher. On Tuesday, it had risen 2 paise to 90.72. Analysts noted that while domestic market activity provided support, gains were limited by a firming US dollar and higher global crude oil prices.
The dollar index, which tracks the greenback against six major currencies, was up 0.08% at 97.22, reflecting continued strength in the US currency amid robust economic growth and sustained foreign investment interest. Brent crude, the global oil benchmark, rose 0.22% to USD 67.57 per barrel in futures trade, adding pressure to the rupee.
Domestic equity markets played a key role in supporting the local currency. The BSE Sensex climbed 283.29 points to settle at 83,734.25, while the NSE Nifty gained 93.95 points to 25,819.35. Foreign institutional investors were net buyers, acquiring equities worth ₹1,154.34 crore, highlighting the appeal of India’s capital markets to global investors. Analysts said such inflows provide short-term support to the rupee by increasing demand for the local currency.
Market experts, including Anil Kumar Bhansali of Finrex Treasury Advisors LLP, highlighted that the rupee remained range-bound with the Reserve Bank of India’s interventions helping maintain stability.
Jateen Trivedi, VP and Research Analyst at LKP Securities, added that the rupee is likely to oscillate within a narrow band, with resistance around 90.25 and support near 90.90, and could continue receiving momentum from equity inflows and capital market activity, despite external pressures from crude oil prices and a stronger US dollar. Overall, the rupee’s movement reflects a mix of domestic optimism tempered by global headwinds. (PTI)
