Indian Rupee Strengthens Against Dollar for 9th Consecutive Session, Hits 1.7% Gain The Indian rupee continued its upward trend against the US dollar, closing at 95.08 per dollar on Wednesday. This marks the longest sustained appreciation in over a year, with the currency rising 1.7% since July 23, surpassing the previous peak of 96.73. The rally reflects a combination of factors including the Reserve Bank of India’s (RBI) decision to keep the repo rate unchanged at 5.25%, a weaker dollar index, and improved global risk sentiment. The rupee’s strength comes amid ongoing geopolitical tensions in the Middle East, which have influenced investor behavior. The RBI’s Monetary Policy Committee (MPC) maintained its neutral stance, signaling stability in monetary policy. Analysts attribute the rupee’s gains to a confluence of factors, including a decline in crude oil prices, reduced dollar demand, and lower yields on US Treasury securities. These elements have bolstered investor confidence in the Indian currency. Market dynamics showed the rupee fluctuating between 94.89 and 95.25 during the trading session before settling at 95.08. This follows a similar rally on August 4, when the rupee closed at 95.28. The sustained appreciation has been supported by foreign capital inflows, which the RBI has actively encouraged through its policy measures. Governor Sanjay Mishra noted that while foreign capital inflows have been robust, the rupee has not yet reached its expected level. He emphasized that a reduction in Middle East tensions could further strengthen the currency.#reserve_bank_of_india #sanjay_mishra #s_p_bse_sensex #anuj_chaudhary #us_institute_for_supply_management
