Indian Rupee Hits Six-Week Peak Driven by Jio Platforms IPO Inflows
The Indian rupee reaches a six-week high against the dollar, fueled by foreign inflows from the Jio Platforms IPO and support from the Reserve Bank of India.
POLICY WIRE — Mumbai, India — The Indian rupee climbed to its strongest position in six weeks on Tuesday, buoyed by a wave of foreign portfolio inflows tied to the highly anticipated Jio Platforms initial public offering.
During early trading on Wednesday, the currency appreciated by 29 paise to reach 94.62 against the U.S. dollar. This movement follows a broader recovery trend, bolstered by positive domestic market sentiment and strategic support from the Reserve Bank of India.
The rupee saw a peak gain of 0.3 percent, reaching 94.29 per dollar—its highest level since May 7. This represents a 1.5 percent advance over the previous four sessions, allowing the currency to successfully breach its 50-day moving average, a technical indicator of growing bullish momentum.
Jio Platforms, the major telecom operator backed by Google and Meta, is set to offer 270 million shares. The IPO price range has been established between 1,065 rupees and 1,119 rupees per share.
While the currency has shown resilience, market participants remain cautious regarding potential volatility stemming from oil price fluctuations. The rupee eventually trimmed its gains to trade at 94.50 as the session progressed.
Reporting by Policy-Wire (PW)
