Rupee Lifted by FPI Inflows

2026-02-09 04:59 By Mariene Camarillo 1 min. read

The Indian rupee inched higher to around 90.7 per dollar, extending gains for the fourth straight session as investors weighed optimism over an interim US–India trade framework and its potential to attract renewed foreign investment into domestic markets.

Overseas investors have begun returning to Indian equities this month, with roughly $900 million in net purchases so far, reversing about $4 billion in outflows seen in January as global sentiment improved.

Further bolstering the currency, the Reserve Bank of India reported a sharp rise in the country’s foreign exchange reserves, which climbed to a fresh record of roughly $723.8 billion as of January 30.

A larger reserve buffer strengthens India’s external position, giving the RBI more flexibility to manage currency volatility.

Investors are now awaiting key domestic inflation data due this Thursday, which will help shape expectations around the Reserve Bank of India’s policy stance.



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