The Indian rupee strengthened to a seven-month closing high against the US dollar on Wednesday, supported by foreign inflows and lower crude oil prices.
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Buoyed by robust FPI inflows into the equity markets and a decline in crude oil prices, the Rupee closed Wednesday near a seven-month high.
The Indian currency closed at 93.69 per US Dollar, up 24 paise over the previous close of 93.93. Intraday, it tested a high/low of 93.62/93.87.
Crude oil decline and FPI inflows support rupee
Dilip Parmar, Senior Research Analyst, HDFC Securities, observed that the rupee gained ground, buoyed by softening crude oil prices, strong foreign institutional inflows, and the absence of central bank intervention amid prevailing risk-on sentiment. Nevertheless, a rebound in the greenback after Tuesday’s inflation figures limited the local currency’s appreciation.
“Participants will eye on India’s CPI data, scheduled tomorrow for the next leg of move in the Rupee. Over the near term, spot USDINR encounters resistance at 94.10, with support at 93.50,” he said.
Axis Bank report retains rupee target of 100 by June 2027
Axis Bank Economic Research Division’s Tanay Dalal (Senior Vice President) and Anshika Singh (Manager), in a special report, noted that more fragmented AI regulation and slower expansion in the US can bring back some lost savings to India. A reversal of the past 12 months’ FPI outflows could bring financeable CAD (current account deficit) back to 0.8% of GDP and move the fair value closer.
Forex adequacy is still low, and rebuilding it is likely to keep INR weaker than fair, per the report. Moreover, short maturities in the 3-5 year bucket are heavy and lower crude oil might not make a large difference – INR began to lose value when CAD was low.
“Continued squeezing of global savings owing to fading of the peace dividend also limits availability of savings to chase India assets.
“We therefore persevere with current FX views targeting INR at 100 by June 2027 for now, with the effect of recent momentum likely to fade in favour of fundamentals. However, we watch for any signs of a more durable turning of the tide.
Government bond yields rise tracking US Treasuries
Meanwhile, yields of Government Securities (G-Secs/GS) hardened, tracking rising US Treasury yields, amid a decline in crude oil prices.
Yields on the benchmark 10-year G-Sec (GS2036) rose 6 basis points to 7.21 per cent, up from 7.15 per cent.
US Treasury yields rose as October consumer price index data came in at 0.4 per cent, higher than the expected 0.3 per cent.
Published on November 11, 2026
