Rupee jumps 65 paise against US dollar as crude oil prices retreat

The rupee appreciated 65 paise to 95.20 against the US dollar in early trade as global crude oil prices declined following optimism over a possible US-Iran deal. A weaker dollar and strong domestic equities further supported the Indian currency.

Mumbai: The rupee surged 65 paise to 95.20 against the US dollar in early trade on Friday as global crude oil prices retreated after US President Donald Trump indicated an imminent deal with Iran.

A weaker greenback and positive sentiment at the domestic equity markets provided further boost to the local unit, according to forex traders.

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At the interbank foreign exchange, the rupee opened at 95.40 before rising further to 95.20 against the greenback.

The rupee had plunged 60 paise to settle at 95.85 against the US dollar on Thursday.

“The rupee opened stronger on Friday, fuelled by a sharp retreat in global crude oil prices. This relief comes in the wake of statements from US President Donald Trump indicating an imminent deal with Iran and the cancellation of planned military strikes,” Aamir Makda, Commodity & Currency Analyst, Commodity Technical Research, Choice Broking, said.

“We expect the rupee… to maintain a positive bias between 95 and 95.30 throughout the day. While the Reserve Bank of India (RBI) has recently rolled out a series of aggressive measures to stimulate dollar inflows and defend the local currency, Thursday’s slide below pre-intervention levels underscores the relentless pressure on the rupee,” Makda said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.75, down 0.11 per cent.

Brent crude, the global oil benchmark, was trading lower by 1.07 per cent at USD 89.41 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 921.30 points to 74,753.85, while Nifty surged 254.20 points to 23,417.25.

Foreign institutional investors offloaded equities worth Rs 1,987.09 crore on a net basis on Thursday, according to exchange data.