Business · India Bureau
Rupee strengthens to 94.79 on softer US dollar, RBI support
The Indian rupee gained ground Friday morning, appreciating 20 paise against the US dollar as weakness in the American currency and Reserve Bank interventions bolstered the domestic unit. Lower US Treasury yields provided additional support, though rising oil prices and equity market declines limited sharper gains.
LSN India ·
The rupee opened at 94.75 at the interbank foreign exchange market before advancing to 94.79 in early trade, marking a 20-paise gain from Thursday's close of 94.99. The appreciation reflected a combination of factors, including depreciation of the dollar index and declining US Treasury yields, which typically make emerging market currencies more attractive to investors.
Reserve Bank of India structural forex interventions also supported the rupee's upward movement, analysts noted. "Decline in the dollar index and softening of US Treasury yields supported the rupee's appreciation. However, a surge in crude oil prices capped sharper gains," said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.
On the US economic front, mixed data provided context for currency movements. Producer Price Index readings came in hotter than expected while retail sales topped forecasts, though weekly unemployment claims aligned with expectations. These figures contributed to broader dollar weakness.
The rupee's gains remained contained by headwinds from elevated crude oil prices and weakness in domestic equity markets, which typically pressure the currency. Investors will continue monitoring US economic data releases and global oil price movements for direction on the rupee-dollar pair in coming sessions.