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Rupee strengthens against US dollar in early trade on Wednesday
May-06-2026

The Indian rupee strengthened against the US dollar in early trade on Wednesday as crude oil prices retreated from their elevated level after US President Donald Trump said the US would temporarily pause its effort to assist stranded vessels in exiting the Strait of Hormuz, allowing time to assess whether a potential agreement with Iran to end the conflict could be reached. Moreover, firm domestic equities and a weaker dollar have also supported rupee sentiments. Rupee also got support from recent reports showing that Reserve Bank of India is considering allowing state-run banks to issue foreign-currency bonds to attract capital inflows, reviving a strategy last used decades ago to support rupee. However, gains were limited by exchange data showing that Foreign Institutional Investors sold equities worth Rs 3,621.58 crore on Tuesday.

The partially convertible currency is currently trading at 95.16, stronger by 2 paise from its previous close of 95.18 on Tuesday. The currency touched a high and low of 95.18 and 94.95 respectively.

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