The Indian rupee gained 14 paise to close at 86.59 against the US dollar on Friday, helped by lower global oil prices, a weaker US dollar, strong stock market performance, and continued foreign investment.
In the interbank foreign exchange market, the rupee started at 86.65 and moved between 86.55 and 86.67, finally settling at 86.59. This marks a recovery after Thursday’s closing of 86.73, which was the lowest in over two months. Over the past three days, the rupee had lost 69 paise.
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Experts say the rupee got support after global oil prices dropped. This came after US President Donald Trump hinted that he would decide in the next two weeks whether the US would get involved in the Israel-Iran conflict.
Maneesh Sharma from Anand Rathi Shares said the rupee improved because of the oil price dip and global developments. However, he added that the rupee still fell more than 1% in June, mostly because of rising tensions in the Middle East that had pushed oil prices up earlier in the month.
Looking ahead, traders are hopeful that the upcoming HDB Financial IPO will attract foreign investors, which could further strengthen the rupee. Sharma mentioned that the rupee is likely to stay between 86.20 and 86.70 early next week.
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In other market updates:
- The US dollar index dropped by 0.30% to 98.60.
- Brent crude oil prices fell by 2.36% to $76.99 per barrel.
- The Indian stock market saw a big rally:
- BSE Sensex rose by 1,046.30 points to 82,408.17.
- NSE Nifty jumped 319.15 points to 25,112.40.
- Foreign institutional investors (FIIs) bought stocks worth Rs 934.62 crore on Thursday.
Overall, the rupee’s recovery was supported by global and domestic factors, and eyes are now on the HDB IPO for further support.
