Rupee Dynamics and Market Support The Indian rupee finished Tuesday at 94.94 against the U.S. dollar, a 28‑paise gain and a near two‑month high. Traders cited possible RBI intervention and MSCI‑linked inflows as key support. The interbank market opened at 95.06, reached an intraday high of 94.79 and a low of 95.10 before closing at 94.94.
Oil Prices, Fed Signals and Global Tensions Brent crude climbed 1.97 % to $92.27 per barrel, adding pressure on the rupee. Analysts warn that rising crude and hawkish comments from Fed Chair Kevin Warsh could keep the dollar firm. The dollar index traded at 99.58, up 0.15 %. Traders are also watching U.S. ISM manufacturing PMI and JOLTS job openings, expecting the USD/INR to trade between 94.65 and 95.25.
Equity Markets, FPIs and Macro Outlook On the domestic front, Sensex dipped 12.99 points to 76,944.28 while Nifty fell 24.60 points to 24,055.80. Foreign institutional investors sold equities worth ₹7,985.88 crore on a net basis, though they invested $3.1 billion in August – the strongest monthly inflow in 23 months. Overall, foreign investors remain net sellers of about $24.6 billion in 2026.
India’s economy grew 7.8 % in the April‑June quarter, exceeding expectations amid global uncertainty. The fiscal deficit for 2026‑27 stands at 26.8 % of the full‑year target, down from 29.9 % of Budget Estimates for the first four months of 2025‑26. These macro indicators, combined with market sentiment, shape the rupee’s trajectory and equity performance for the coming weeks.