Indian Rupee Rises on Dollar Softness

2026-02-11 04:17 By Mariene Camarillo 1 min. read

The Indian rupee rose to around 90.5 per dollar, extending gains for the third consecutive session, supported by a softer dollar and steady domestic demand.

Analysts expect the currency to maintain an upside bias, bolstered by continued foreign inflows and trade-related flows, even as broader Asian currencies remained in a narrow range.

Market sentiment was further strengthened by ample domestic liquidity, with large cash infusions by the Reserve Bank of India pushing the key overnight borrowing rate roughly 100 basis points below the policy benchmark and creating the largest liquidity surplus in six months.

The RBI refrained from short-term draining measures, kept overnight rates low, and maintained the surplus near INR 3 trillion, supported by federal spending and ongoing injections.

Investors are now awaiting inflation data later in the day for guidance on the RBI's future policy direction.



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