Politics · India Bureau
Rupee climbs 23 paise to 96.65 as dollar weakens in early trade
The Indian rupee strengthened against the US dollar in early Friday trade, buoyed by a softer greenback and suspected central bank support. The currency gained 23 paise to reach 96.65, though persistent geopolitical concerns and foreign fund outflows continue to weigh on sentiment.
LSN India ·
The rupee opened at 96.74 at the interbank foreign exchange market before climbing to 96.65, marking an appreciation of 23 paise from Thursday's closing level of 96.88. The gains came as the US dollar index retreated to 102 levels, while Brent crude oil prices softened to USD 103.39 per barrel. Traders attributed the rupee's strength partly to suspected intervention by the Reserve Bank of India to support the domestic currency.
Market participants noted that US President Donald Trump's announcement regarding potential military action against Iran only after the midterm elections helped ease some of the earlier pressure on emerging market currencies. The improved sentiment provided temporary relief to the rupee after a torrid week of depreciation.
However, analysts cautioned that broader headwinds remain in play. Sustained geopolitical tensions continue to create uncertainty around the rupee, while the relentless outflow of foreign portfolio investments has kept downward pressure on the domestic unit. The rupee's recovery may face challenges if the US dollar index rebounds from current levels or if capital outflows accelerate further.