Rupee gains 38 paise, reaches 90.40 against US dollar; foreign investments lift sentiment

The Indian rupee gained 38 paise against the US dollar in early Thursday trading, reaching 90.40. This rise came from foreign investments and likely support from the Reserve Bank of India (RBI). The currency market saw good liquidity and positive sentiment despite ongoing global tensions and oil price concerns.The rupee opened at 90.55 and quickly strengthened to 90.40, bouncing back from Wednesday’s close of 90.78. The currency briefly touched 90.56 during initial trades.CR Forex Advisors MD Amit Pabari explained that banks have plenty of cash right now. “The RBI has been quietly ensuring that liquidity remains abundant in the banking system. With surplus liquidity hovering near Rs 3 trillion — the highest in six months — banks are flush with cash,” he said.However, challenges remain. High oil prices continue to worry the economy. The India-US trade deal has also raised some concerns after the White House released new details. The deal requires India to lower tariffs on US industrial and agricultural products.The dollar index showed slight weakness, dropping 0.05 percent to 96.78. Oil prices stayed firm with Brent crude futures up 0.42 percent at $69.69 per barrel.Indian stock markets opened lower. The Sensex fell 349.87 points to 83,883.77, while Nifty dropped 106.60 points to 25,847.25. Despite market volatility, foreign investors showed confidence by buying Indian stocks worth Rs 943.81 crore on Wednesday.Global issues and trade uncertainties continue to affect market mood. Yet, steady foreign investments and RBI’s support help maintain the rupee’s strength.