The Indian unit closed 44 paise stronger at 94.96 per US dollar
| Photo Credit:
same design
The rupee on Tuesday logged its biggest single day gain in over three-weeks, buoyed by central bank intervention and Dollar sales by exporters.
The Indian unit closed 44 paise stronger at 94.96 per US dollar against the previous close of 95.40. Intraday, rupee tested a high/ low of 94.94/ 95.37.
V Rama Chandra Reddy, Head – Treasury, Karur Vysya Bank, said there was talk in the market of central bank intervention (sale of dollars) through public sector banks.
Pressure on the domestic currency eased as crude oil prices are relatively subdued and foreign portfolio investor (FPI) are gradually coming back into the Indian markets, eyeing investment in IPOs, he said.
Strong recovery
Amit Pabari, MD, CR Forex Advisors, observed that the rupee staged a strong recovery on Tuesday, appreciating sharply from Monday’s three-week low to close at 94.96, its strongest level in about a week, as supportive domestic factors outweighed external headwinds.
“The primary driver behind today’s move was the continued decline in crude oil prices. Brent crude remains near $72 per barrel, its lowest level in more than four months, after OPEC+ agreed to increase production once again and Saudi Aramco cut the official selling price of its Arab Light crude for Asian buyers, he said.
Pabari underscored that for an oil-importing economy like India, lower crude prices reduce the country’s import bill and ease demand for dollars, providing direct support to the rupee. The currency also benefited from improving foreign portfolio flows.
FPIs turned net buyers
FPIs turned net buyers of Indian financial stocks in the second half of June, investing ₹14,634 crore after being net sellers earlier in the month.
“These inflows, driven by global index rebalancing and value buying, boosted dollar supply in the domestic market. At the same time, the global dollar remained broadly range-bound, allowing domestic positives to have a greater influence on the rupee’s performance,” Pabari said.
He assessed that despite today’s sharp appreciation, the move can be viewed more as a corrective pullback rather than the start of a sustained strengthening trend.
Published on July 7, 2026
