Rupee opens 4 paise higher at 88.74/USD on support from IPO inflows

The rupee hovered near its all-time low last week amid global uncertainty and cautious local sentiment.

The Indian rupee opened 4 paise higher on October 6, supported by strong IPO inflows, currency experts said.

The local currency opened at 88.74 against the US dollar, as compared to 88.7825 against the greenback at the previous close.

"We are entering a new week with three major IPOs — WeWork, Tata Capital, and LG — worth around Rs 31,000 crore. Inflows from these IPOs are expected to lift the rupee toward 88.50 during the week," said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors LLP.

Tata Capital’s $1.75 billion share sale opens on October 6, while LG Electronics India’s $1.3 billion IPO will launch on October 7. Both offerings are expected to attract significant foreign investor participation.

Meanwhile, WeWork India’s Rs 3,000 crore issue, open until October 7, has seen moderate subscriptions so far, with several SME IPOs also lined up this week.

The rupee hovered near its all-time low last week amid global uncertainty and cautious local sentiment. Persistent US tariff pressures and steady portfolio outflows kept the currency under strain.

“Yet beneath the surface, early signs suggest the broader environment may finally be turning in the rupee’s favour,” said Amit Pabari, Managing Director at CR Forex Advisors.