Rupee Gains 19 Paise to 95.16 as Dollar Index Slips and RBI Focuses on Reserves

Rupee gains 19 paise to 95.16 against the US dollar, while the dollar index eases from its recent 15‑month high. The Reserve Bank of India’s attention on foreign‑exchange reserves and outflows from foreign institutional investors caps further appreciation.

Mumbai, July 3 (PTI) – The rupee strengthened by 19 paise, reaching 95.16 per US dollar during early trading on Friday, as the dollar index retreated from its recent peak.

Currency analysts noted that despite a weaker dollar and lower crude prices, the rupee continues to face pressure from robust demand for dollars by importers and corporate hedgers.

In the inter‑bank foreign‑exchange market, the rupee opened at 95.20 and climbed to 95.16, marking a 19‑paise gain from the previous close.

On Thursday, the rupee gave up initial gains and ended the session lower by 19 paise at 95.35 per US dollar.

Even with a softer dollar index and reduced oil prices, the rupee remained under pressure. “If the rupee cannot rally on positive global cues, any adverse development could push USD/INR toward the 95.80‑96.00 range,” said Amit Pabari, managing director of CR Forex Advisors.

Pabari added that the Reserve Bank of India is concentrating on rebuilding its foreign‑exchange reserves, which have fallen from a February peak of $728.49 billion to approximately $672.6 billion, limiting the central bank’s capacity to let the rupee appreciate freely, “even when global conditions are supportive,” he noted.

The dollar index, measuring the greenback against a basket of six currencies, was quoted at 100.81, down from its recent 15‑month high of 101.6.

Brent crude, the international oil benchmark, slipped 0.63 % to $72.25 per barrel in futures trading.

On the domestic equity market, the Sensex rose 545.89 points to 78,048.01 in early trade, while the Nifty advanced 173.85 points to 24,346.90.

Foreign institutional investors net‑sold equities worth Rs 311.82 crore on Thursday, according to exchange data.

Foreign investors extended their selling streak in June, withdrawing Rs 49,340 crore ($5.16 billion) from Indian equities, driven by early‑month global risk aversion, a preference for developed markets, rising US bond yields, and stretched domestic valuations.

Data from the Central Depository Services (India) Ltd indicate that foreign portfolio investor withdrawals from Indian equities have reached Rs 2.7 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore withdrawn over the entire calendar year 2025.

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