Rupee Roars Back: Smashes Past 90/USD Barrier with 0.3% Surge!

Currency Rally Drivers

The INR strengthened against the USD (INR=IN, INR=D3), reversing recent depreciation trends fueled by global trade tensions and oil volatility. Robust domestic liquidity from RBI's ₹99 bn repo and ample bank balances at ₹7.69 tn provided solid backing, while FII inflows into equities added momentum.

Key Highlights

Spot Rate Gain: INR=IN traded above 90/USD, up 0.3% from prior close near 90.45, hitting intraday low of 89.80.

RBI Support: Central bank's forex sales and liquidity ops stabilize volatility; govt surplus cash at ₹500 bn aids balance.

Market Triggers: Weak US data dims Fed hike odds; Nifty IT up 1% and bond yields steady at 6.576% fuel confidence.

Technical View: RSI rebound signals oversold recovery; key support at 90.50, resistance near 89.00 for further gains.

Economic Boost

This appreciation lowers inflation passthrough, aiding corporates; eyes on US jobs data for sustained rally.

Sources: RBI Forex Data, Reuters Currency Updates, Economic Times Market Reports.