The rupee was at 90.92 per dollar at 10:30 am IST, slightly higher than Tuesday’s close of 90.95.
This week is a bad spot for the rupee, with a string of contract maturities in the non-deliverable forward market coming under pressure over the past two sessions.
On the day, however, traders pointed to modest dollar inflows and reflows into local stocks, giving the currency some relief.
India’s benchmark equity indices, the BSE Sensex and the Nifty 50, rose around 1%, led by IT stocks, which rose over 2.5% after heavy selling in recent sessions.
IT shares have about 11% weightage in the Nifty 50 index, which is the second largest.
Shares in Asia were also higher, with MSCI’s gauge of regional equities rising more than 1.5%, tracking Wall Street’s overnight rally on renewed enthusiasm that AI will boost profits for businesses.
Meanwhile, the focus was on action taken from US President Donald Trump’s State of the Union address, during which he briefly laid out his case for a possible attack on Iran while making little mention of his signature tariff policies that were recently struck down by the US Supreme Court.
“Global trade uncertainty is set to remain a medium-term structural feature, as the Trump administration moves toward rebuilding tariff barriers through slower but more legally defensible channels,” MUFG said in a note.
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