Rupee rises 2 paise to close at 94.49 against U.S. dollar

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Published - September 04, 2026 04:55 pm IST - Mumbai

Representative image. | Photo Credit: Getty Images/iStockphotos

The rupee settled for the day higher by 2 paise at 94.49 (provisional) against the U.S. dollar on Friday (September 4, 2026), supported by optimism over rising foreign inflows and a rise in risk appetite.

Forex traders said the rupee is set to strengthen due to robust foreign capital inflows and active RBI intervention.

However, rising crude oil prices and escalating U.S.-Iran geopolitical tensions may cap these upside gains.

At the interbank foreign exchange market, the rupee opened at 94.53 and touched an intra-day high of 94.46 and a low of 94.53 during the session.

At the end of Friday's trading session, the rupee was quoted at 94.48 (provisional), higher by 2 paise from its previous close.

On Thursday, the rupee extended its gaining momentum for the fifth straight session, appreciating 22 paise to close at 94.51 against the U.S. dollar.

"The Indian rupee gained on positive domestic markets, ... foreign inflows and FII buying also supported the rupee," Anuj Choudhary, Research Analyst, Mirae Asset ShareKhan, said.

This is the sixth straight session of gains for the rupee.

On Wednesday, the rupee settled at 94.73, recording a gain of 22 paise.

The local unit gained 27 paise to settle at 94.95 against the U.S. dollar on Tuesday, after rising 21 paise and 2 paise in the preceding two sessions on Monday and Friday, respectively.

"We expect the rupee to trade with a positive bias on positive global markets and improved global risk sentiments.

Foreign inflows and reduced expectations of a rate hike following dovish comments by Fed Governor Christopher Waller may also support the rupee.

"However, elevated crude oil prices and any fresh escalation of tensions between the U.S. and Iran may cap sharp upside.

Traders may take cues from the non-farm payrolls report from the US.

USDINR spot price is expected to trade in a range of 94.15 to 94.75," Choudhary added.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.11, higher by 0.21% on safe-haven demand amid renewed U.S.-Iran tensions.

Brent crude, the global oil benchmark, was trading higher by 0.01% at $95.53 per barrel in futures trade, on escalating U.S.-Iran tensions and fears of disruption to oil flows through the Strait of Hormuz.

On the domestic equities market front, Sensex rose 362.57 points to settle at 76,515.43, while the Nifty was up 24.25 points to 23,897.70.

Foreign institutional investors (FIIs) offloaded equities worth ₹2,345.87 crore on a net basis on Thursday, according to exchange data.

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