Archive · 4 Sep 2026
Rupee Extends Sixth-Day Gains Amid Inflow and Oil Risks
The Indian rupee became stronger against the US dollar on Friday.
It had been gaining for six trading days in a row.
The reports disagree slightly about exactly where it finished, putting the rate between 94.43 and 94.49 rupees per dollar.
Money flowing into India and stronger Indian stock markets helped the rupee.
The Reserve Bank of India was also reported to be supporting the currency.
More expensive oil could make it harder for the rupee to keep rising.
Tensions between the United States and Iran could also increase demand for the dollar.
An analyst said the exchange rate might stay between 94.15 and 94.75.
The rupee extended its gains for a sixth consecutive session on Friday, with reports placing its close between 94.43 and 94.49 per US dollar.
It opened at 94.53 and reached an intraday high between 94.43 and 94.46, according to differing reports.
Foreign-currency deposits mobilised under a special central-bank programme reached USD 127.23 billion, with total reported inflows reaching USD 136.377 billion including borrowings.
Positive domestic markets, foreign inflows, improved risk appetite and reported Reserve Bank of India intervention supported the rupee.
Higher crude prices, a stronger dollar and renewed US-Iran tensions remained risks; one analyst forecast USDINR in a 94.15–94.75 range.
- Who
- The Indian rupee, the US dollar, foreign investors, the Reserve Bank of India, and currency-market analysts.
- What
- The rupee extended a six-session winning streak against the US dollar, with reports differing on its Friday closing rate.
- When
- Friday, September 4, 2026; the rupee’s sixth consecutive session of gains.
- Where
- India’s interbank foreign-exchange market.
- Why
- Foreign inflows, positive domestic markets, improved risk appetite and reported RBI intervention supported the rupee, while higher oil prices, a stronger dollar and US-Iran tensions posed risks.
Factors Supporting Rupee Gains
Risks Limiting Further Gains
Foreign inflows and RBI support
Factors Supporting Rupee Gains
Analysts cited robust foreign capital inflows, foreign-institutional activity, improved risk appetite and active Reserve Bank of India intervention as reasons the rupee could remain firm.
Risks Limiting Further Gains
The reports said external risks could still limit the rupee’s gains despite those supportive factors.
Oil and geopolitical conditions
Factors Supporting Rupee Gains
Positive domestic and global markets, along with reduced expectations of a US rate hike after dovish comments by Christopher Waller, could support the rupee.
Risks Limiting Further Gains
Higher Brent crude prices, a stronger dollar and renewed US-Iran tensions could increase pressure on the rupee and push USDINR toward 95.00, 95.50 or eventually 96.00, according to Amit Pabari.
Foreign institutional activity
Factors Supporting Rupee Gains
One report said foreign institutional investors bought Indian equities worth Rs 2,345.87 crore on a net basis on Thursday, supporting domestic markets and the rupee.
Risks Limiting Further Gains
Another report said FIIs sold equities worth Rs 3,111.94 crore on Friday, while a third cited net selling of Rs 2,345.87 crore on Thursday; the reports therefore conflict on the activity and amount.
- Opening rate
- 94.53 per US dollar
- Reported intraday high
- Between 94.43 and 94.46 per US dollar, depending on the report
- Reported Friday close
- Reports differed, citing 94.43, 94.48 or 94.49 per US dollar
- Previous close
- 94.51 per US dollar on Thursday
- Foreign-currency deposits
- USD 127.23 billion mobilised under a special central-bank programme
- Total reported inflows
- USD 136.377 billion including overseas foreign-currency and external commercial borrowings
- Expected USDINR range
- 94.15 to 94.75, according to Anuj Choudhary
