Mumbai, Oct 9: The rupee appreciated 23 paise to 96.65 against US dollar in early trade on Friday, supported by a slight softening in the US dollar and suspected intervention by the Reserve Bank of India.
Forex traders said the rupee opened on a positive note this morning with the dollar index down to 102 levels and Brent also down to USD 103.39 per barrel after US President Donald Trump said that the attack on Iran will happen only after the midterm elections.
However, broader geopolitical pressures on the domestic currency persist and relentless foreign fund outflows is pressurising the domestic unit further, they said.
At the interbank foreign exchange market, the rupee opened at 96.74, then gained some ground to touch 96.65, registering a rise of 23 paise over its previous close.
On Thursday, the rupee depreciated by 13 paise to close at 96.88 against the US dollar.
“Sustained strength in the US Dollar Index (DXY trading near multi-month highs near to 102.50), Brent crude prices firming back above USD 104 per barrel, and relentless foreign portfolio outflows from domestic equities kept dollar demand elevated among oil marketing companies and importers,” said Anil Kumar Bhansali Head of Treasury and Executive Director Finrex Treasury Advisors LLP.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower by 0.10 per cent at 102.03.
Brent crude, the global oil benchmark, was trading lower by 1.09 per cent at USD 103.14 per barrel in futures trade.
On the domestic equity market front, Sensex climbed 292 points to 71,876.10, while the Nifty was trading up 84.60 points to 22,310.40.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 12,943.58 crore on a net basis on Thursday, according to exchange data. (PTI)
