Now Reading: Rupee rises 13 paise to 95.63 on FII inflows, but capped by firm dollar
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Rupee rises 13 paise to 95.63 on FII inflows, but capped by firm dollar
Rupee rises 13 paise to 95.63 on FII inflows, but capped by firm dollar
The rupee strengthened by 13 paise to 95.63 against the US dollar in early trade on July 30, 2026, supported by positive domestic equities and foreign capital inflows. The Sensex rose 0.06%…
The Story in Brief
The rupee strengthened by 13 paise to 95.63 against the US dollar in early trade on July 30, 2026, supported by positive domestic equities and foreign capital inflows. The Sensex rose 0.06% and the Nifty gained 0.09%, while Foreign Institutional Investors bought equities worth Rs 2,981.87 crore on a net basis on July 29.
However, gains were capped by a strong dollar index at 101.79 after the US Federal Reserve kept interest rates unchanged. Brent crude futures fell 1.26% to $89.60 per barrel, amid renewed US-Iran hostilities after US strikes on Iranian targets in Iraq. The rupee had gained 6 paise the previous day to close at 95.76.
The Indian Opinion
The rupee’s recovery is often cheered as a sign of strength, but the full picture is less celebratory. Gains are driven by volatile foreign inflows and equity momentum, not export competitiveness or manufacturing heft. Meanwhile, crude above $89 a barrel and a resurgent dollar index near 102 keep the currency vulnerable. The real test will come when FII flows reverse or the Fed signals another rate hike. Will the rupee hold 96, or is this just a temporary reprieve?
Sources (2): thehindu.com, thehindu.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
