Overview
- The rupee settled near 94.4 to the dollar on Thursday after earlier sessions of sharp recovery, with market reports showing a close at about 94.41.
- Intraday trading saw an open near 94.36, a low around 94.57, a high near 94.32, and small paise moves that determined the final settlement.
- Traders said the currency is showing signs of short-term stabilisation following recent gains, citing domestic equity strength and inflows as key support.
- Falling crude oil prices and robust foreign portfolio purchases helped cushion the rupee, while a firm US dollar, measured by a dollar index near 101.50, limited further appreciation.
- Because small paise shifts usually reflect short-term FX flows rather than structural change, investors should watch crude prices, foreign fund flows and dollar strength for the next directional cues.