The rupee strengthened by 26 paise to 85.54 against the US dollar in early trade on Wednesday, supported by strong foreign capital inflows, a weakening US dollar, and declining crude oil prices.
According to forex traders, upbeat macroeconomic data and a 90-day relief from US reciprocal tariffs spurred foreign investor interest in domestic equities, further boosting the local currency.
At the interbank foreign exchange market, the rupee opened on a strong note at 85.66 and advanced to 85.54 in early deals, marking a 26 paise gain from its previous close.