Rupee gains 28 paise as tensions Ease, markets rise
Mumbai: The rupee strengthened 28 paise to 92.86 against the US dollar in early trade Friday, buoyed by hopes of easing geopolitical tensions and upbeat sentiment in domestic equity markets.
Foreign investors returned as buyers of Indian equities, adding support to the local currency. At the interbank foreign exchange market, the rupee opened at 92.93 and moved higher to 92.86 against the greenback, building on Thursday’s gain of 19 paise when it settled at 93.14.
The uptick comes as crude oil prices fell below $100 per barrel, with Brent crude trading 1.16% lower at $98.24 in futures trade. Analysts linked the decline to expectations that the crisis in West Asia may soon ease.
On the geopolitical front, China has asked Tehran to ensure freedom and safe passage through the Strait of Hormuz, a key international trade route. In another development, Israel and Lebanon have agreed to a 10-day ceasefire, a move seen as boosting broader peace efforts in the region involving the US, Israel, and Iran.
Domestic equities also opened higher. The 30-share Sensex gained 176.08 points or 0.23% to 78,164.76 in early trade, while the Nifty rose 33.90 points or 0.14% to 24,232.60. Foreign Institutional Investors turned net buyers on Thursday, purchasing equities worth Rs 382.36 crore, according to exchange data.
The dollar index, which measures the greenback against a basket of six currencies, edged up 0.05% to 98.07.
