The Indian rupee appreciated 16 paise to ₹84.61 against the US dollar in early trade on Friday, following a weaker dollar and an overnight decline in crude oil prices. The rupee’s rise comes after a sharp 45-paise depreciation in the previous session, which was triggered by geopolitical tensions stemming from India’s military strikes against terror camps in Pakistan and PoK. However, Friday’s recovery was supported by: Lower crude oil prices, reducing India’s import bill and easing pressure on the currency.Foreign fund inflows, boosting market sentiment despite ongoing geopolitical concerns. Forex traders noted that the rupee opened at ₹84.61, touched an early low of ₹84.65, and peaked at ₹84.54 against the greenback. Analysts believe that sustained foreign fund inflows and a stable monetary policy outlook could help the rupee maintain its gains in the near term.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, was trading slightly higher at 99.65, indicating mixed global sentiment. The domestic equity market saw mild fluctuations, with the BSE Sensex declining 50 points to 80,696.78, while the Nifty fell 31.30 points to 24,383.10. Foreign institutional investors (FIIs) purchased equities worth ₹2,585.86 crore on a net basis, reflecting confidence in India’s economic fundamentals.
While the rupee’s recovery is encouraging, experts caution that geopolitical uncertainties and global economic trends will continue to influence currency movements. Investors will closely watch US Federal Reserve decisions, crude oil price fluctuations, and India’s trade balance for further cues.
