Indian Rupee Hits Five-Month High as USD/INR Falls to 93.70, FIIs Invest Rs. 53,172 Crore in November Amid Declining Oil Prices and Improving Market Sentiment
The Indian Rupee strengthened against the US Dollar on Wednesday, supported by foreign institutional investment and declining crude oil prices. The USD/INR pair slipped to a five-month low near Rs. 93.70, reflecting improved demand for Indian assets.
Foreign Investors Pour Rs. 53,172 Crore Into Equities
Foreign Institutional Investors (FIIs) have maintained consistent buying activity throughout November, recording cumulative net investments of Rs. 53,172.24 crore.
According to NDTV Profit, India’s relatively limited exposure to expensive artificial intelligence infrastructure investments has emerged as an advantage amid global technology-sector volatility.
Investors increasingly view Indian equities as offering comparatively stable earnings prospects while concerns surrounding AI spending pressure international markets.
Strategists at ABN Amro said the “AI investment story acquired a political risk premium” following US midterm election results and concerns over increased congressional oversight.
Falling Crude Oil Prices Support Rupee
Oil prices declined as diplomatic developments reduced concerns about further US military action against Iran.
According to MUFG analysts, President Donald Trump’s softer position encouraged optimism about negotiations.
Trump told CNN that additional military strikes were “highly unlikely” if diplomatic progress continued.
However, he emphasized that “it depends on whether or not they sign a very strong agreement.”
The MCX crude oil contract expiring November 19 declined 0.6% to approximately Rs. 8,050, approaching Tuesday’s two-month low of Rs. 7,861.
Lower oil prices can reduce India’s import expenditure and demand for US Dollars.
USD/INR Technical Outlook Signals Further Decline
Technical indicators suggest the Rupee could extend its gains, although oversold conditions may temporarily limit momentum.
USD/INR remains below its 20-day exponential moving average (EMA) of Rs. 94.69, indicating continued selling pressure on the currency pair.
The Relative Strength Index (RSI) stands near 25, suggesting oversold conditions that could trigger a short-term recovery.
Immediate resistance lies near Rs. 94.15, followed by the 20-day EMA around Rs. 94.70. Meanwhile, the next significant support level stands around Rs. 93.
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