The Indian currency ended its trading session at 93.69 per US dollar, marking a seven-month peak. According to The Hindu BusinessLine, this 24-paise gain from the prior close was driven by significant foreign portfolio investment in equities and a drop in global crude oil costs. Business Standard added that the rupee outperformed other Asian currencies during the session, benefiting from positive investor sentiment despite a resilient US dollar.
Dilip Parmar, a senior research analyst at HDFC Securities, explained that the lack of central bank intervention and a risk-on environment supported the currency. He noted that a rebound in the US dollar after new inflation data released on Tuesday capped the rupee’s rise. Parmar stated that market attention will shift to India’s upcoming Consumer Price Index release to gauge further movement. He identified 94.10 as a resistance level and 93.50 as support for the near term.
Simultaneously, yields on Indian government bonds increased, mirroring trends in US Treasury markets. The Hindu BusinessLine reported that the yield on the benchmark 10-year security climbed six basis points to 7.21 per cent. This shift followed a rise in US Treasury yields after October consumer price data showed a 0.4 per cent increase, exceeding the expected 0.3 per cent.
Tanay Dalal and Anshika Singh from Axis Bank’s research division suggested that slower US economic growth and fragmented AI rules could eventually redirect global savings toward India. They argued that reversing recent foreign outflows might lower the financeable current account deficit to 0.8 per cent of GDP. However, their report indicated that low forex reserves and heavy short-term bond maturities could keep the rupee below its fair value. The analysts maintained a target of 100 rupees per dollar by June 2027, expecting recent momentum to fade.