Rupee rises 5 paise to 94.46 against U.S. dollar in early trade
The Indian rupee appreciated against the U.S. dollar, supported by strong foreign inflows and RBI intervention. However, rising crude oil prices and geopolitical tensions between the U.S. and Iran continue to pose risks to the currency's stability.
Why it matters
Currency fluctuations impact India's import costs and inflation, making this a critical indicator for the domestic economy.
The rupee gained 5 paise to 94.46 against the U.S. dollar in early trade on Friday (September 4, 2026), supported by optimism over rising foreign inflows and a rise in risk appetite.
Forex traders said the rupee is poised to gain strength, supported by strong underlying inflows and aggressive RBI intervention. However, higher crude oil prices and potential U.S.-Iran tensions could limit further gains.
At the interbank foreign exchange market, the rupee opened at 94.53 against the U.S. dollar, then gained ground to touch 94.46, registering a gain of 5 paise from its previous close.
On Thursday (September 3, 2026), the rupee extended its gaining momentum for the fifth straight session appreciating 22 paise to close at 94.51 against the U.S. dollar.
India mobilised a record $127.23 billion through foreign-currency deposits under a special central-bank programme aimed at bolstering the country's foreign-exchange liquidity.
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