Rupee Rebounds 16 Paise to 95.73 Against U.S. Dollar
The Indian currency gained ground on Friday, reversing part of its recent slide. Domestic equity buying and lower oil prices supported the recovery.
The rupee rose 16 paise to 95.73 against the U.S. dollar in early trade on Friday. This move reversed a portion of the currency's recent decline. The rebound came after the rupee hit lows over two months ago. Domestic equity markets showed a buying trend. Global crude oil prices also eased.
Crude oil prices fell below the 104-dollar-per-barrel level. This drop reduced pressure on the Indian currency. U.S. bond yields also declined from record highs. The Federal Reserve had recently hiked interest rates by 25 basis points. These factors combined to support the rupee's early strength.
Interbank trading shows modest gains
The rupee opened at 95.75 in the interbank market. It then traded at 95.73 in early deals. This represented a 16-paise gain from the previous close. On Thursday, the currency ended 2 paise higher at 95.89. The previous close had been 95.91.
The rupee lost 150 paise in the eight sessions before Thursday. That decline amounted to nearly 1.5 percent. The currency had closed at 94.43 on September 4. The recent recovery marks a pause in that downward trend. Market participants are watching for sustained support.
Global indicators and equity performance
The dollar index traded 0.02 percent lower at 99.97. This measure tracks the greenback against six other currencies. Brent crude futures fell 0.93 percent to 103.85 dollars per barrel. These global shifts influenced the local exchange rate. The rupee benefited from the softer dollar and oil.
Domestic equities posted modest gains on Friday. The Sensex rose 122.18 points, or 0.16 percent, to 74,436.77. The Nifty gained 23.55 points, or 0.10 percent, to 23,294.15. Foreign institutional investors sold 3,208.76 crore rupees worth of equities on Thursday. Exchange data confirms this net outflow. The rupee strength occurred despite this selling pressure.
Market context from GN auto markets
GN auto markets/forex: currency markets reports highlight the mixed signals. Equity buying supported the rupee in early trade. However, previous days saw significant foreign selling. The interbank data reflects a stabilization phase. The currency remains volatile against the dollar. Analysts note the importance of oil price trends. The rupee's path depends on these global factors.
