Rupee rebounds 65 paise to 95.20 on crude slump, Trump’s Iran deal hint
The rupee staged a sharp recovery in early trade Friday, surging 65 paise to 95.20 against the US dollar, after the previous day’s steep fall.
At the interbank forex market, the domestic unit opened at 95.40 and quickly moved up to 95.20. That rebound followed a 60 paise drop on Thursday, when the rupee had settled at 95.85 against the greenback.
The rally was led by two factors: a slide in global crude prices and a weaker US dollar, after US President Donald Trump signalled an imminent deal with Iran and cancellation of planned military strikes.
“The rupee opened stronger on Friday, fuelled by a sharp retreat in global crude oil prices,” said Aamir Makda, Commodity & Currency Analyst at Choice Broking. “This relief comes in the wake of statements from US President Donald Trump indicating an imminent deal with Iran.
”Brent crude, the global benchmark, fell 1.07% to $89.41 per barrel in futures trade. A cheaper oil bill is a key positive for India’s import-heavy economy. The dollar index was also under pressure, trading at 99.75, down 0.11% against a basket of six major currencies.
Domestic equities added to the positive tone. Sensex jumped 921.30 points to 74,753.85, while Nifty surged 254.20 points to 23,417.25 in early trade.
Foreign institutional investors, however, remained net sellers, offloading equities worth ₹1,987.09 crore on Thursday.
