Key facts
- The Indian rupee strengthened by 0.9% against the US dollar.
- The rupee closed at 94.9450 per dollar.
- This is the rupee's largest daily gain since April 2.
- Forward premiums fell to 2.67 rupees, the lowest this financial year.
The Indian rupee experienced its most significant daily appreciation against the US dollar in two months, closing at 94.9450 per dollar. This gain of 0.9% represents the largest single-day increase since April 2. Concurrently, forward premiums, which reflect the cost of hedging foreign exchange exposure, saw a notable decline, reaching 2.67 rupees. This is the lowest level observed in the current financial year, down from a previous figure of 2.85 rupees. The strengthening of the rupee suggests increased demand for the currency or reduced demand for the US dollar in the Indian market.