Rupee falls 9 paise to 94.50 against US dollar in early trade
Overnight gains in crude oil prices and a recovery in the US dollar weighed on rupee, forex traders say
The rupee depreciated by 9 paise to 94.50 against the US dollar in early trade on Friday, as the strong performance of the American currency in global markets diminished investor confidence, according to forex traders. The interbank foreign exchange market saw the rupee open at 94.50 against the US dollar, marking a decline of 9 paise from its prior close.
However, during the initial trading session, the rupee rebounded marginally to reach a peak of 94.36 against the US dollar. On Thursday, the rupee had closed at 94.41 against the American currency. Bank of England officials maintained interest rates steady, while US weekly unemployment claims were better than expected, according to Anuj Choudhary, a research analyst at Mirae Asset Sharekhan.
Choudhary anticipates a positive trend for the Rupee due to strength in domestic markets and fresh Foreign Institutional Investor (FII) inflows. However, geopolitical tensions between Ukraine and Russia, as well as attacks in the Middle East, could limit significant gains. The dollar index, which measures the greenback's strength against a basket of six currencies, stood at 101.71, up 0.17 percent.
Brent crude oil, the global benchmark, surged 2.04 percent to $100.30 per barrel in futures trading. On the domestic stock market, the Sensex gained 33 points to 79,343.06 in early trade, while the Nifty fell 52.95 points to 24,477.40. On Thursday, Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth ₹14,974.68 crore, as per exchange data.
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