Rupee Rises To 90.40 Amid Steady FPI Flows and Stable Global Cues

The Indian rupee appreciated sharply in early trade on Thursday (February 12), reversing its weakness from the previous session. The currency opened mildly weaker but quickly strengthened as domestic factors dominated market sentiment.

Traders reported that stable global cues allowed local flows and liquidity conditions to guide price action. The move signalled a measured recovery rather than a reaction to any single macroeconomic development.

Rupee Recovers After Weak Start in Early Session

The rupee opened at 90.55 against the US dollar in Thursday’s morning session. It soon gained momentum and touched 90.40, registering an appreciation of 38 paise compared to the previous close.

This move followed a day of weakness on Wednesday (February 11), when the currency had come under slight pressure. Market participants noted that the recovery reflected natural adjustments driven by domestic trading interests.

Foreign Portfolio Flows Provide Key Domestic Support

Traders pointed to steady foreign portfolio inflows as a primary factor behind the currency’s strength. On Wednesday (February 11), foreign institutional investors purchased Indian equities worth ₹943.81 crore.

Although the inflow was not particularly large, market participants said the consistency of buying supported sentiment. The early‑session dollar selling was attributed to the positive bias created by these inflows.

Broader Market Conditions Reflect Mixed Global Cues

Asian currencies traded largely range‑bound after the release of stronger‑than‑expected US payroll data for January. While the data initially pushed up US Treasury yields and strengthened the dollar, analysts observed that the figures could still face revisions.

As a result, regional currencies showed limited directional bias, offering no significant pressure on the rupee. The environment allowed domestic dynamics to exert a larger influence on movement.

Dollar Index Trends Keep External Pressure Contained

The dollar index was slightly lower at 96.78 during early trade on Thursday. The subdued reading indicated that the dollar was not experiencing any broad‑based strength capable of weighing on emerging market currencies.

With the index easing marginally, the rupee faced no strong external headwinds from global currency markets. Stable international conditions reinforced the impact of domestic flows on the rupee’s trajectory.

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Conclusion

The rupee’s early‑session appreciation to 90.40 reflected a blend of steady foreign inflows, comfortable liquidity and muted global movements. A softer dollar index and mixed Asian currency trends created supportive external conditions.

Domestic market behaviour, especially equity‑related flows, played a central role in strengthening the currency. The session highlighted the rupee’s sensitivity to local factors during periods of relatively calm global activity.

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