Indian rupee has strengthened against US dollar on Thursday supported by consecutive fund inflows from foreign institutional investors (FIIs). FIIs were the net buyers of Wednesday’s session, buying securities worth Rs 6,688.37 crore. Investor sentiments also remained upbeat after India attracted total inflows of $136.377 billion as on August 31 under the Reserve Bank of India’s special USD-INR forex swap facility, with FCNR-B deposits alone accounting for $127.226 billion (provisional). Besides, investors were optimistic about the country’s economic resilience after Finance Minister Nirmala Sitharaman said that India recorded a 'remarkable growth' of 7.8% in the first quarter (Q1) of fiscal year 2026-27 (FY27) despite global disruptions, and against all odds, remains the fastest-growing major economy in the world. On the global front, euro has strengthened against US dollar on Thursday after US President Donald Trump stated that renewed US attacks on Iran would likely be short-lived, helping ease concerns over a prolonged Middle East conflict.
Finally, the rupee ended at 94.60 (Provisional), strengthened by 13 paise from its previous close of 94.73 on Wednesday. The currency touched a high and low of 94.66 and 94.26 respectively.