INR vs USD Rate, July 2 2026: Rupee rises 26 paise to 94.90 against US dollar in early trade

Mumbai: The rupee appreciated 26 paise to 94.90 against the US dollar in early trade on Thursday, supported by easing crude oil prices. Forex traders said the domestic currency opened on a positive note as crude oil prices have fallen back to levels seen before the West Asia conflict. They added that global risk sentiment has also stabilised compared to the panic witnessed a few weeks ago.

Foreign investors poured nearly USD 5.3 billion into Indian bond markets during June, marking the first month of positive inflows after three consecutive months of outflows, traders said.

At the interbank foreign exchange market, the rupee opened at 94.95 and later touched 94.90 against the US dollar, registering a gain of 26 paise from its previous close. On Wednesday, the rupee had depreciated 60 paise to close at 95.16 against the US dollar.

“As fresh foreign capital starts entering India, markets believe the RBI may continue absorbing a significant portion of these inflows rather than allowing them to fully strengthen the rupee,” said CR Forex Advisors MD Amit Pabari.

Pabari further said that despite positive FII inflows and lower crude oil prices, the rupee weakened sharply. “If the rupee cannot strengthen on good news, any negative development could easily push USDINR towards the 95.80–96.00 zone. For now, the bias remains on the upside, while 94.80 is likely to act as an important support level,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01 per cent lower at 101.38.

Brent crude, the global oil benchmark, was also trading 1.13 per cent lower at USD 70.76 per barrel in futures trade.

On the domestic equity market front, the Sensex climbed 377.40 points to 77,269.54 in early trade, while the Nifty rallied 106.70 points to 24,113.25.

Foreign institutional investors sold equities worth Rs 1,140.50 crore on a net basis on Wednesday, according to exchange data.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)