Rupee Hits Six‑Week High on Jio IPO Inflows and Weaker Dollar

The Indian rupee closed at a six‑week high of 94.46 per dollar on Wednesday, up 46 paise from the previous session. The rally was sparked by strong foreign portfolio inflows tied to the Jio Platforms initial public offering. A softer dollar index, which slipped from the day before, also added upward pressure on the currency. Oil prices rose above $110 a barrel, a factor that normally drags the rupee lower, but the Reserve Bank of India stepped in to curb any loss of momentum. RBI’s intervention helped keep the rupee firm despite the oil price surge. Since the central bank announced support measures on October 10, the rupee has gained a total of 230 paise. The combined effect of foreign buying, a weaker dollar and RBI action outweighed the headwind from higher oil costs, delivering the strongest closing level in six weeks.

Context

Foreign investors often chase large IPOs like Jio Platforms, and their buying can lift the local currency. A softer dollar index means the greenback is less strong against other currencies, making the rupee appear stronger in comparison. RBI’s readiness to intervene is a common tool to stabilize the rupee when external pressures rise.