Rupee logs biggest single-day gain since Oct 12, closes 56 paise higher at 93.91/ dollar

Mumbai: The Indian rupee posted its strongest daily advance since October 12, ending 56 paise higher at 93.91 against the US dollar on Friday, compared with its previous close of 94.47.

The domestic currency also touched a six-month high during the trading session, extending its weekly gains to around 1.2 per cent and emerging as one of the best-performing currencies in Asia.

Market participants attributed the rally largely to sustained foreign portfolio inflows into Indian equities and softer crude oil prices, factors that improved demand for the rupee and reduced pressure on India’s import bill.

Dealers said foreign banks were actively selling dollars on behalf of foreign portfolio investors, providing further support to the domestic currency.

At the same time, the Reserve Bank of India was seen purchasing dollars near the 93.88 level, helping curb excessive appreciation in the rupee.

The rupee strengthened to an intraday high of 94.04 during the session, returning to levels last seen around October 12.

On that date, RBI Governor Sanjay Malhotra had said markets were overly pessimistic about the Indian currency and expressed confidence in the country’s medium- and long-term balance of payments position.

On Friday, the rupee appreciated about 0.6 per cent against the US dollar, outperforming all its regional peers and ranking as Asia’s best-performing currency for the day.

Despite the recent rebound, the rupee remains weaker on a longer-term basis. The currency has depreciated 4.3 per cent so far in calendar year 2026 and is down 5.6 per cent over the past one year.

However, it has gained nearly 1 per cent in the current financial year, as per its regulatory filing.

Experts said that the Indian Rupee outpaced all of Asian peers, scoring its biggest single-day surge since October 12 to hit a six-month peak.

“Fueled by heavy foreign inflows and sliding crude prices, market sentiment went into overdrive amid a parabolic rally in domestic equities sparked by the buzz around the Anti-AI trade and ease of geopolitical uncertainties,” analysts stated.

“In the near term, spot USDINR is expected to head south with support pegged at 93.50 and resistance ticking up to 94.30,” market watchers noted.