Rupee hits six-week high against US dollar on Jio IPO inflows and stock rally

The Indian rupee climbed to a six-week high against the US dollar on Wednesday morning, rising 29 paise as foreign investors moved funds into the country for the Jio Platforms initial public offering.

Opening at 94.78 at the interbank foreign exchange market, the local unit rapidly strengthened to 94.62 before touching an intraday peak of 94.50 against the American currency. The advance represents a gain of nearly 0.5 per cent over Monday's close of 94.91. Currency markets were shut on Tuesday for the Dussehra holiday.

Fresh liquidity entering Indian capital markets provided immediate upward momentum. The Jio Platforms public offer, which opened for retail and institutional subscription on Wednesday, has drawn widespread foreign investor participation, generating heavy dollar sales that directly bolstered the rupee. Backing from timely Reserve Bank of India market interventions also helped anchor stability, reflecting sound external sector management amid broader global currency fluctuations.

Equity markets surge alongside domestic currency

Domestic stock benchmarks advanced in tandem with the currency, buoyed by solid domestic economic fundamentals and investor appetite. The BSE Sensex rallied by roughly 800 points during early trade, while the NSE Nifty50 pushed above the 23,100 mark.

The sharp rebound in equities offset lingering pressure from earlier institutional outflows. Exchange data showed that foreign institutional investors offloaded equities worth Rs 1,148.64 crore on Monday. The arrival of primary market flows on Wednesday swiftly reversed that negative sentiment.

High oil prices limit further currency advance

International crude prices prevented the rupee from advancing further. Brent crude futures rose 1.42 per cent to trade at $110.33 per barrel, raising India's import bill and checking dollar supplies. At the same time, the US dollar index, which tracks the greenback against six major currencies, held firm, inching up 0.06 per cent to 101.58.

Aamir Makda, commodity and currency analyst at Choice Broking, noted that elevated international oil prices continue to serve as a principal headwind for the domestic currency. Over the remainder of the session, Makda expects the rupee to trade in a consolidated range between 94.00 and 94.75 against the dollar.

Despite crude volatility, the rupee's performance underscores the resilient draw of India's capital markets, where major corporate listings and steady domestic liquidity continue to insulate the economy from global headwinds.