Rupee rises 20 paise to 94.79 against US dollar in early trade

The Indian rupee gained 20 paise, reaching 94.79 against the US dollar in early trade on Friday, according to reports. The strengthening was attributed to a weakening of the American currency and positive effects of the Reserve Bank of India's forex interventions. Lower US treasury yields also contributed to the rupee's rise. However, high crude oil prices and a decline in equity markets slightly curbed the rupee's gains.

The interbank foreign exchange market saw the rupee open at 94.75, then climb to 94.79, marking a 20-paise increase from its previous close. On Thursday, the rupee had risen 18 paise to 94.99 against the US dollar. A decline in the dollar index and softening of US treasury yields also aided the rupee. However, a surge in crude oil prices limited the gains.

US Producer Price Index came in hotter than expected, while retail sales surpassed forecasts. Weekly unemployment claims were in line with predictions. Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, noted these factors. The dollar index, which measures the strength of the greenback against six currencies, dropped 0.54 percent to 102.

Brent crude, the global oil benchmark, fell 0.54 percent to $105.35 per barrel in futures trade. On the domestic stock market, the Sensex fell 113 points to 74,187 in early trade, and the Nifty declined 27.20 points to 22,967.15. On Thursday, Foreign Institutional Investors offloaded equities worth ₹5,285.37 crore on a net basis, according to exchange data.