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Below the Quote on rupee by Rajeev Sharan, Head of Research, Brickwork Ratings

"The rupee slipped 9 paise to 94.50 against the dollar in early trade on Friday from Thursday’s 94.41 close, before finding support by afternoon. What changed today is that INR 14,975 crore in foreign stock buying on Thursday, the largest single-day inflow of 2026 and lifting five-day inflows to INR 35,809 crore, failed to push the currency meaningfully higher as Brent crude reclaimed the USD 100 mark on fresh Middle East tensions. Moreover, the RBI’s decision to drain INR 25,000 crore through a reverse repo auction today offers a telling clue. Absorbing extra rupees from the banking system right as large foreign funds enter the country indicates the RBI is actively buying those incoming dollars to rebuild its reserves. Heavy equity inflows are no longer fueling a rupee rally, they are refilling India’s forex buffer."

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