What happened
The Indian rupee ended Wednesday, 4 November, at a provisional 94.58 to the US dollar, stronger by 17 paise than the previous close. It was the second session in a row that the currency gained, according to a PTI report carried by the Economic Times.
In the interbank foreign exchange market, where banks trade currencies with one another, it opened at 94.61. During the day it reached a high of 94.50 and a low of 94.87.
A paise is one-hundredth of a rupee, so a 17 paise gain means a dollar now costs 17 paise less in rupee terms than at the previous close.
The past few sessions
| Session | Move | Close (₹ per $) |
|---|---|---|
| Monday, 2 November | Down 8 paise | 94.84 |
| Tuesday, 3 November | Up 9 paise | 94.75 |
| Wednesday, 4 November | Up 17 paise | 94.58 |
Tuesday’s close of 94.75 is the figure reported by PTI via ThePrint. BusinessLine had carried a provisional 94.71 earlier that day. The rupee had risen 50 paise on Friday before Monday’s dip, BusinessLine reported.
What moved the rupee
Forex traders pointed to easing crude oil prices, a weaker US dollar and capital inflows from overseas investors. The dollar index, which measures the dollar against a basket of six currencies, was at 101.18, down 0.53%.
Brent crude, the global oil benchmark, fell 0.73% to $102.84 a barrel in futures trade, even as geopolitical uncertainty continued. India imports much of its oil, so cheaper crude generally eases pressure on the rupee.
Vinod Nair, Head of Research at Geojit Investments, said the outcome of the US midterm elections improved global sentiment. He said it raised expectations of a more measured approach to trade and tariff policies, which could support foreign flows into emerging markets.
What it means for you
A firmer rupee makes dollar-priced items such as imports, foreign travel and overseas tuition slightly cheaper in rupee terms. For NRIs sending money home, each dollar converts into slightly fewer rupees than it did at Monday’s close of 94.84. You can check current conversions with the Currency Converter or the Money Transfer to India Calculator.
Day-to-day moves of this size are small, and traders’ ranges can shift quickly with oil prices and global news.
Background
Domestic stocks also rose. The Sensex gained 383.55 points, or 0.50%, to 77,301.40, and the Nifty rose 149.75 points, or 0.63%, to 23,960.60. Both had ended more than 1.5% higher the session before.
Foreign institutional investors were net buyers of equities for a third consecutive day on Tuesday, buying ₹6,836.81 crore on a net basis, according to exchange data. On Monday they had bought ₹3,114.68 crore.
On Tuesday, Mirae Asset Sharekhan analyst Anuj Choudhary said tensions involving Ukraine and Russia and attacks in the Middle East could cap sharp gains for the rupee. His expected range for the spot rate was ₹94.40 to ₹95.
