The Indian rupee strengthened further against the US dollar on Friday, pushing USD/INR to a fresh nearly six-month low near 94.08. The move has been supported by softer oil and steady foreign fund inflows into Indian equities. The MCX Crude Oil contract expiring on 19 November rose 1.36% to about Rs 8,670 after touching an almost two-month low of Rs 8,191, yet it remains down nearly 13.5% from a multi-month high of Rs 9,972. Lower oil prices tend to favour import-dependent currencies such as the rupee.
Foreign Investment and Market Focus
Foreign Institutional Investors have bought Rs 32,210.20 crore of Indian shares so far in November, helping to ease concerns around forex reserves. Markets are also focused on US Nonfarm Payrolls for October due at 12:30 GMT; ahead of the release, the US Dollar Index was up 0.2% near 101.77. Expectations cited by TD Securities point to payrolls of 40K after 29K in September, with upside risks. Technically, USD/INR remains below its 20-day EMA at 94.99, while the RSI is 29.29, and the pair is eyeing 94.00 on the downside.
