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FII outflows and uncertainties over fresh tensions in West Asia weigh on rupee while a strong start to the day’s trade at the domestic equity markets provid support, say traders.
Rupee Vs Dollar Today.
The Indian rupee on Friday jumped 24 paise to 95.23 against the US dollar in the opening trade, aided by a dip in oil prices and broad-based dollar weakness, although traders cautioned that Middle East war risks continue to lurk in the background.
Brent was last quoted at $76.34, down about 2% on Thursday after a rally.
The rupee had appreciated by 1 paisa to settle at 95.47 against the US dollar in the previous session on Thursday.
FII outflows and uncertainties over fresh tensions in West Asia weighed on the local unit while a strong start to the day’s trade at the domestic equity markets provided support, according to forex traders.
The US launched new airstrikes against Iran on early Thursday, and Tehran responded by targeting US-allied West Asian countries in an exchange of fire that threatened an interim deal intended to help end the war.
Back-and-forth attacks, including a day earlier, have repeatedly threatened the ceasefire. But Thursday’s appeared bigger all around, with sirens sounding at least three times in Bahrain, home to the US Navy’s 5th Fleet headquarters, and missiles targeting Kuwait and Qatar.
“Traders reported dollar selling by state-run banks, widely viewed as acting on behalf of the Reserve Bank of India (RBI). The intervention helped the rupee break through the 95.50-level and maintain gains through the session on Thursday. Exporters may sell dollars on all upticks while importers keep buying the dips on Friday,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.64, down 0.25 per cent.
Brent crude, the global oil benchmark, was trading lower by 0.35 per cent at $77.75 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 694.83 points to 77,423.82 in early trade on Friday while Nifty surged 195.95 points to 24,154.85.
Foreign institutional investors offloaded equities worth Rs 532.86 crore on a net basis on Thursday, according to exchange data.
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