The Indian rupee rose 5 paise to close at ₹96.73 against the US dollar on Friday, snapping a three-session losing streak as softer crude oil prices and a weaker dollar supported the currency.
Forex traders also pointed to gains across other Asian currencies, improved global risk appetite and likely intervention by the Reserve Bank of India (RBI) as factors supporting the rupee.
The currency opened at ₹96.74 against the dollar and traded between ₹96.51 and ₹96.77 during the session before settling at ₹96.73, compared with Thursday’s close of ₹96.78.
Sentiment improved after US President Donald Trump indicated that Washington would refrain from military action against Iran ahead of the November midterm elections, said Dilip Parmar, senior research analyst at HDFC Securities.
“The Indian rupee appreciated after three days of weakness, strengthening against the US dollar in tandem with its broader Asian peers. The greenback weakened as crude oil prices eased and risk appetite surged across global markets,” Parmar said.
He added that likely central bank intervention had also provided support to the domestic currency.
Dollar and crude oil prices ease
The dollar index, which measures the US currency against a basket of six major currencies, was down 0.04% at 102.09.
Brent crude futures fell 1.28% to $102.95 a barrel. Lower oil prices can ease India’s import bill and reduce demand for dollars from domestic oil importers, supporting the rupee.
Parmar said the near-term trend for the dollar-rupee exchange rate remained constructive, identifying resistance around ₹97 and support at ₹95.30.
Stock market gains offer support
Indian equity markets also rallied on Friday. The BSE Sensex rose 879.09 points to close at 72,472.33, while the NSE Nifty gained 288.65 points to settle at 22,520.45.
However, foreign investor selling remained a concern. Foreign institutional investors (FIIs) sold Indian equities worth a net ₹12,943.58 crore on Thursday, according to exchange data.
