Rupee rises 10 paise to 96.65 against US dollar in early trade

The Indian rupee strengthened by 10 paise to 96.65 against the US dollar in early trade on Thursday, as the Reserve Bank of India may have intervened to support the currency. Forex traders attributed the rise to likely RBI intervention and noted that the rupee is facing pressure due to persistent macroeconomic challenges, such as global dollar strength, high Brent crude prices, and significant foreign fund outflows.

The rupee opened at 96.71 and climbed to 96.65, marking a 10-paise increase from its previous close. On Wednesday, the rupee closed at 96.75 against the dollar. Strong demand from corporate importers for dollars and a flight to safety amid capital shifts contributed to the USD/INR's upward movement throughout the afternoon. RBI Governor's assurance to help find the true value of the rupee, which is believed to be undervalued, was also cited by traders.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, traded at 102.25, up 0.01 percent. Brent crude prices surged 2.17 percent to $102.37 per barrel, driven by ongoing concerns over Middle East supply disruptions, particularly with escalating attacks on tankers in the Gulf and the Strait of Hormuz.