The rupee rebounded sharply and settled with a gain of 20 paise at 86.92 (provisional) against the US dollar on Friday, as the American currency index declined to its five-month-low level and crude oil prices eased on lower demand expectations.
Volatile domestic equity market sentiment and uninterrupted outflow of foreign capital, however, weighed on the domestic currency, forex traders said, attributing the foreign investors’ outflow to an increased risk aversion due to tariff ambiguity worldwide. At the interbank foreign exchange, the rupee opened at 87.13 and touched the intra-day low of 87.22 against the greenback. The unit strengthened during intra-day trade to 86.88 before ending at 86.92 (provisional) against the dollar, 20 paise higher from its previous close.
The rupee had settled 6 paise lower at 87.12 against the US dollar on Thursday, snapping its three-session rally. It had gained 31 paise in the preceding three consecutive sessions.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading lower by 0.43 per cent at 103.58, close to the level seen on November 5, 2024. Brent crude, the global oil benchmark, went up by 1.41 per cent but stayed at six-month low levels of $70.44 per barrel in futures trade.” The profit booking in crude oil seems to have driven prices higher,” said Mohammed Imran, research analyst, Mirae Asset Sharekhan.
