CHENNAI: The Indian rupee and stock markets showed resilience on Wednesday, September 3, even as most Asian currencies weakened on soft global cues. Support from equities, easing oil prices, and optimism around India–US trade talks helped the rupee stay steady, while gains in banking and metal stocks lifted the indices at Wednesday’s close.
The rupee closed at 88.07 per dollar, slightly stronger than Tuesday’s close of 88.16. It touched an intraday high of 87.99 before easing back. Traders noted that the recent bearish mood in the options market has softened, with expectations of near-term stability. While many analysts believe the currency will hold around present levels, some caution that it could drift toward 90 if tariff-related risks resurface.
Equities performed strongly during the day. The Sensex gained about 410 points and the Nifty crossed 24,700, supported largely by banks and metal counters. State Bank of India rose more than 1 percent, while IndusInd Bank and Kotak Mahindra also recorded healthy gains.
Market watchers say the rupee is likely to remain stable around 88 in the short term, with equity inflows and the Reserve Bank’s presence in the background helping to prevent sharp swings. However, unresolved tariff issues remain a concern and could weigh on the currency in the weeks ahead.
On the equities side, investor confidence in financials and metals reflects optimism about domestic growth, though global factors such as oil prices and trade developments will continue to set the tone.
