Rupee Rises 7 Paise To 95.19 Against US Dollar, Weak Greenback Supports Gains Amid Crude Oil Concerns

The Indian rupee gained 7 paise to 95.19 against the US dollar in early trade on Friday, buoyed by a weaker American currency and falling US Treasury yields. However, surging crude oil prices and subdued Asian markets curbed further gains. The currency opened at 95.21 at the interbank foreign exchange market before rising to 95.19 against the greenback. On Thursday, the rupee had ended 2 paise higher at 95.26.

Sensex opened 49 points higher, while Nifty edged closer to 23,000, with IT stocks surging over 1%. The US dollar index slipped 0.27% to 101.75. Anuj Choudhary, a research analyst at Mirae Asset Sharekhan, noted that lower US Treasury yields bolstered the rupee, though rising oil prices and weak Asian equities hampered further appreciation. Major central banks, the European Central Bank and Bank of Japan, kept their interest rates unchanged.

Brent crude futures fell 1.05% to $116.09 per barrel, but persistently high global oil prices remained a concern for India's import-intensive economy. Forex traders anticipated the USD-INR pair to trade between 94.75 and 95.75, driven by sustained capital inflows and lower oil import costs. Anindya Banerjee, Head of Commodity and Currency Research at Kotak NEO, emphasized the Reserve Bank of India's role in ensuring orderly currency movements, with West Asia developments, the US midterm elections, and upcoming American inflation and employment data as key triggers.