Archive · 4 Sep 2026
Rupee rises for fifth session amid foreign inflows
The Indian rupee became stronger against the US dollar for the fifth trading session in a row.
Reports disagreed about its exact closing value and the size of its daily gain.
One report said it closed at ₹94.51, while another said it closed at ₹94.59.
Large foreign-currency deposits brought money into India and helped support the rupee.
Other foreign investments also helped the currency.
A weaker dollar, lower US Treasury yields and a stronger yen provided additional support.
However, more expensive oil and tensions involving the United States and Iran could make further gains difficult.
Indian share markets fell during the same session.
The rupee gained for a fifth consecutive session on Thursday, though reports differed on its provisional close.
One report placed the close at ₹94.51 after a 22-paise rise, while another reported ₹94.59 after a 14-paise gain.
India mobilised a reported record $127.23 billion through FCNR(B) deposits under a special central bank programme.
Including overseas foreign-currency borrowings and external commercial borrowings, total inflows reached $136.377 billion, according to RBI data.
Analysts cited foreign inflows, FII buying, a softer dollar and lower US Treasury yields as supports, while oil prices and US-Iran tensions posed risks.
- Who
- The Indian rupee, foreign investors, the Reserve Bank of India, currency traders and market analysts were involved.
- What
- The rupee extended its winning streak to five sessions, with reports differing on its closing rate and daily gain.
- When
- Thursday, identified in the reports as September 3.
- Where
- The trading took place in India’s interbank foreign-exchange market, with the report datelined Mumbai.
- Why
- Higher foreign-currency deposits, foreign investment, a weaker US dollar and lower US Treasury yields supported the rupee.
Factors Supporting the Rupee
Risks Limiting Further Gains
Currency outlook
Factors Supporting the Rupee
Anuj Choudhary said rising foreign inflows, stronger global risk appetite and a softer US dollar could keep the rupee’s outlook positive.
Risks Limiting Further Gains
Choudhary said elevated crude-oil prices and any fresh escalation in tensions between the United States and Iran could limit the rupee’s upside.
Foreign investment
Factors Supporting the Rupee
Analysts linked the rupee’s strength to FCNR(B) deposits, foreign institutional equity buying and reported foreign portfolio investment in Indian government securities.
Risks Limiting Further Gains
Higher oil prices and fears of disruption to flows through the Strait of Hormuz could increase pressure on India’s currency.
- Reported closing rate
- ₹94.51 in one report and ₹94.59 provisionally in another
- Reported daily gain
- 22 paise in one report and 14 paise provisionally in another
- FCNR(B) deposits
- $127.23 billion mobilised under a special central bank programme
- Total inflows
- $136.377 billion, including overseas foreign-currency borrowings and external commercial borrowings
- Currency indicators
- The dollar index stood at 99.22, down 0.38%; the yen also appreciated sharply
- Oil price
- Brent crude rose 0.85% to $96.44 per barrel in futures trading
- Indian markets
- The Sensex fell 417.49 points and the Nifty declined 41 points
- Foreign investment
- FII equity purchases were reported at ₹2,345.87 crore on Thursday and ₹6,688.37 crore on Wednesday
