Rupee Surges 38 Paise Against Dollar Despite Weak Equities: What Drove the Gain?

• Indian rupee strengthened by 38 paise to 90.40 per US dollar on Thursday, reversing previous day's decline.
• Appreciation attributed to steady foreign portfolio inflows into equities and ample rupee liquidity in banking system.
• Foreign institutional investors (FIIs) bought Indian equities worth ₹943.81 crore, providing psychological support.
• RBI's liquidity management resulted in banking system surplus liquidity near ₹3 lakh crore, highest in six months.
• Global cues were calm, with the dollar index marginally down, allowing local factors to dominate rupee's direction.