Currency Market News: Rupee gains 13 paise to 86.60 against dollar as oil slides
The Indian rupee appreciated by 13 paise to 86.60 against the US dollar in early trade on Friday, aided by a drop in global crude oil prices and a weaker greenback.
This recovery comes after the domestic currency had lost 30 paise on Thursday, settling at 86.73 — its lowest closing level in over two months — marking a cumulative three-day decline of 69 paise.
At the interbank foreign exchange, the rupee opened at 86.65 before inching up to 86.60.
Commenting on the outlook, Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, told PTI, “The uncertainty over the Iran-Israel conflict persists, and US President Donald Trump has merely postponed America’s entry into the war by two weeks. The rupee is expected to trade in the 86.35–86.95 range. Exporters are in a good position to sell dollars now as the rupee could appreciate to 85.50–85.75 levels in July if hostilities ease.”
He further advised importers to hold off on hedging while suggesting exporters book profits at 86.85–86.90. “Foreign portfolio investors have been marginal net buyers over the last three sessions, with most selling seen in mid- and small-cap stocks, even as key indices remain largely stable despite the Middle East tensions,” Bhansali added.
The dollar index, which tracks the US currency against six major peers, slipped 0.31 per cent to 98.59.
First Trade: Indices open on a muted note, Nifty near 24,800; Bajaj Auto down over 2%
On the equities front, Indian markets opened on a subdued note amid weak global sentiment. The NSE Nifty50 was marginally down by 0.25 per cent at 24,793, while the BSE Sensex edged up 19.25 points to 81,381.11. The Bank Nifty index rose 0.26 per cent.
In commodities, Brent crude futures dropped 2.46 per cent to USD 76.91 per barrel, providing some relief to import-dependent economies like India.
In the broader market, the Nifty Midcap 100 and Smallcap 100 indices traded mixed, with the smallcap index in the red. As per exchange data, foreign institutional investors bought equities worth ₹934.62 crore on a net basis on Thursday.
