Rupee Gains 12 Paise to ₹96.24 as RBI-Backed Forex Inflows Boost Sentiment

The Indian rupee recovered from early losses to settle 12 paise higher at ₹96.24 (provisional) against the US dollar on Tuesday, supported by strong foreign exchange inflows under the Reserve Bank of India's initiatives to boost forex liquidity amid global uncertainties.

At the interbank foreign exchange market, the rupee opened at ₹96.41 against the dollar and moved in a range of ₹96.13 to ₹96.42 during the session. The domestic currency had closed at ₹96.36 on Monday, marking a decline of six paise.

Forex traders said the rupee received structural support from USD 20.72 billion in foreign currency inflows mobilised through the RBI's concessional swap facility since June 8. The central bank said the facility had attracted significant interest, with strong mobilisation particularly seen through Foreign Currency Non-Resident (Bank) or FCNR(B) deposits.

According to the RBI, FCNR(B) deposits accounted for USD 17.406 billion of the total inflows. Overseas Foreign Currency Borrowings contributed USD 1.97 billion, while External Commercial Borrowings brought in USD 1.342 billion.

Meanwhile, the dollar index, which measures the greenback's strength against six major currencies, was trading marginally lower at 100.91. Brent crude, the global oil benchmark, was up 0.25 per cent at USD 89.44 a barrel.

Market participants remained cautious as elevated oil prices and geopolitical tensions in the Middle East continued to pose risks to global energy supplies. Traders also flagged concerns over the potential impact of the US-Iran conflict and regional disruptions on crude markets.

Domestic equities also ended lower, with the Sensex falling 238.41 points to 77,470.11, while the Nifty declined 50.80 points to 24,187.70. Foreign Institutional Investors were net sellers of Indian equities worth ₹1,121.04 crore on Monday, according to exchange data.