Rupee Rebounds to 94.43 Against Dollar as Jio IPO Sees Record-Speed Subscription

The Indian rupee staged a strong recovery on Wednesday, climbing 48 paise to close at a six-week high of 94.43 against the US dollar, as foreign currency inflows linked to Reliance Industries’ Jio Platforms IPO and intervention by the Reserve Bank of India (RBI) supported the domestic currency.

The rupee opened at 94.78 against the dollar in the interbank foreign exchange market and strengthened to an intraday high of 94.41 before settling at 94.43 on a provisional basis. It last closed at a comparable level on September 4. The foreign exchange market remained shut on Tuesday due to Dussehra.

The recovery came despite mounting pressure from rising crude oil prices, falling domestic equities and continued foreign investor outflows. Market analysts said weakness in the US dollar and IPO-related inflows helped the rupee gain ground, although the improvement could face challenges if oil prices remain elevated.

The ₹30,213-crore Jio Platforms IPO, which opened for subscription on Wednesday, emerged as a major source of support. The public issue, carrying a price band of ₹1,065 to ₹1,119 per share, was fully subscribed within just 100 minutes of opening, making it the fastest-subscribed IPO on record, according to the reported figures.

Large public offerings can support the rupee when foreign investors convert dollars into Indian currency to participate in share subscriptions. The RBI has also been taking steps to manage excessive exchange-rate volatility and curb dollar demand in the spot market.

However, the currency's gains face significant external risks. Brent crude surged 1.99% to $110.96 per barrel, amid renewed tensions in the Middle East and concerns over potential supply disruptions. Higher oil prices increase India's import bill and can put additional pressure on the rupee by raising demand for dollars.

The dollar index, which measures the US currency against a basket of six major currencies, rose 0.07% to 101.59, highlighting that the rupee's recovery came despite a slight strengthening of the greenback.

Domestic equity markets also remained under pressure. The Sensex fell 143.21 points to 73,709.69, while the Nifty declined 77.60 points to 22,811.35. Foreign institutional investors had sold equities worth ₹1,148.64 crore on a net basis on Monday.

Analysts expect the rupee to maintain a positive bias if the dollar weakens further and US Treasury yields soften. The dollar-rupee spot rate is expected to trade between 94.20 and 94.80 in the near term.