Rupee strengthened in early trade on Monday, rising 22 paise to 89.45 against the US dollar, extending its recovery after hitting record lows in recent weeks.Earlier this month, rupee slid to a series of lifetime lows, even weakening beyond the 91-per-US-dollar mark. The currency, however, later healed in recovery attributed to likely intervention by the Reserve Bank of India. On Friday, it appreciated by 53 paise to close at 89.67 against the dollar. Forex traders said that the rebound was supported by corporate dollar inflows and easing crude oil prices.
Foreign Institutional Investors bought equities worth Rs 1,830.89 crore on Friday, according to exchange data. India’s forex reserves also rose, increasing by $1.689 billion to $688.949 billion during the week ended December 12, the Reserve Bank of India said. In the previous reporting week, the overall reserves had risen by $1.033 billion to $687.26 billion.State Bank of India (SBI) has projected a strong rebound in the rupee in the latter half of the next financial year, with the recovery expected to materialise between October 2026 and March 2027, according to its latest report.The country’s largest lender said that its outlook is based on historical currency trends and internal analysis, indicating that the current phase of weakness is not structural. The report further noted that rupee has witnessed several cycles of depreciation and appreciation in the past and is likely to emerge from the present downtrend in the second half of the next fiscal year.
