Rupee Gains 6 Paise to 90.89 Against US Dollar in Early Trade Amid Weak Dollar, Firm Equities

Indian Rupee Opens Higher in Interbank Market​

The Indian rupee strengthened by 6 paise to 90.89 against the US dollar in early trade on Wednesday, February 25, supported by a weaker American currency and a strong opening in domestic equity markets.

At the interbank foreign exchange market, the rupee opened at 90.94 against the dollar and later advanced to 90.89, marking a 6 paise gain from its previous close.

On Tuesday, the local currency had traded in a narrow range and settled 6 paise lower at 90.95 against the US dollar.

Dollar Buying Caps Upside for Rupee​

Forex market participants noted that continued dollar buying activity limited the rupee’s gains.

Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the rupee ended at 90.95 on Tuesday with minimal movement throughout the session due to persistent dollar demand.

He indicated that the expected trading range for the day could be between 90.75 and 91.25, with buyers likely to step in to purchase dollars within that band.

Dollar Index and Crude Oil Impact Currency Movement​

The dollar index, which gauges the strength of the US dollar against a basket of six currencies, was trading 0.07 percent lower at 97.77.

However, rising global crude oil prices weighed on sentiment. Brent crude, the global oil benchmark, climbed 1.37 percent to USD 71.74 per barrel in futures trade.

Higher crude prices are closely watched by currency markets as they can influence India’s import bill and impact the rupee’s trajectory.

Sensex and Nifty Rebound Sharply​

Domestic equity markets opened on a strong note, providing additional support to the local currency.

The Sensex jumped 558.79 points to 82,784.71, while the Nifty advanced 157.05 points to 25,581.70 in early trade.

Despite the rebound in equities, foreign institutional investors remained net sellers. On Tuesday, FIIs offloaded equities worth Rs 102.53 crore, according to exchange data.

Key Factors Influencing Rupee Today​

The rupee’s movement in early trade reflects a mix of global and domestic cues:

• A marginally weaker US dollar
• Strong gains in Indian equity markets
• Rising Brent crude prices
• Continued foreign institutional investor outflows

Currency markets are expected to closely track crude oil trends, dollar index movements, and foreign capital flows for further direction during the session.