The Indian rupee opened Friday on a robust note, appreciating 65 paise to 95.20 against the US dollar in early trade, buoyed by a decline in global crude oil prices and signals from US President Donald Trump that a deal with Iran could be imminent.
Market Drivers
Forex traders attributed the rupee's strength to a weaker US dollar and upbeat sentiment on Dalal Street. At the interbank foreign exchange market, the domestic currency opened at 95.40 against the greenback and extended its gains to trade at 95.20. This recovery came a day after the rupee had plunged 60 paise to close at 95.85 against the US dollar on Thursday.
Aamir Makda, Commodity & Currency Analyst at Commodity Technical Research, Choice Broking, said: "The rupee opened stronger on Friday, driven by a sharp retreat in global crude oil prices. This relief follows statements from US President Donald Trump indicating an imminent deal with Iran and the cancellation of planned military strikes."
Outlook and RBI Measures
Makda added: "We expect the rupee to maintain a positive bias between 95 and 95.30 throughout the day. While the Reserve Bank of India has recently rolled out a series of aggressive measures to stimulate dollar inflows and defend the local currency, Thursday's slide below pre-intervention levels underscores the relentless pressure on the rupee."
Global Cues
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six major currencies, slipped 0.11% to 99.75. Global crude prices remained under pressure, with Brent crude futures, the international oil benchmark, declining 1.07% to $89.41 per barrel.
Domestic Equities
Domestic equities traded firmly higher in early deals, adding to the positive mood in financial markets. The Sensex climbed 921.30 points to 74,753.85, while the Nifty advanced 254.20 points to 23,417.25.
Separately, exchange data showed that foreign institutional investors remained net sellers in Indian equities on Thursday, offloading shares worth Rs 1,987.09 crore.
