Foreign inflows returned to India after months of outflows, supporting the
Indian rupee as a tech-sector sell-off redirected capital into the market.
Week-to-date the rupee is up 0.5%; intraday on Thursday it hit 94.32, a two-week
high, before settling at 94.4750. The currency had been under pressure for most
of the year and has relied on central bank intervention for support. This week
two prior drags — oil prices and equity flows — eased, giving the rupee some
relief. Global funds’ earlier rotation into AI-related assets had sidelined
Indian equities; the recent reversal of that trade has helped draw foreign
buying back into India.
