Rupee rallies 52 paise to settle at 93.89 against US dollar

The rupee appreciated 52 paise to close at 93.89 against the US dollar on Friday, supported by a weaker greenback and positive domestic market sentiment. The Sensex surged 1,718 points, while the Nifty gained nearly 494 points

Mumbai: The rupee surged 52 paise to close at 93.89 (provisional) against the US dollar on Friday, as a softer US dollar, coupled with declining crude oil prices and easing concerns over import costs, supported investor sentiment.

Forex traders said a surge in domestic markets and fears of a slowdown in AI spending also supported the rupee.

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At the interbank foreign exchange market, the rupee opened at 94.50 and touched an intraday high of 93.82 and a low of 94.50. The domestic unit closed the session at 93.89 (provisional), registering a gain of 52 paise over its previous close.

On Thursday, the rupee settled 5 paise higher at 94.41 against the US dollar.

“We expect the rupee to trade with a positive bias on strength in domestic markets and rising FII inflows. Weakness in the dollar post US mid-term elections and a decline in US Treasury yields may also support the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.

However, tensions between Ukraine and Russia and attacks in the Middle East may cap sharp gains.

“Traders may take cues from the non-farm payrolls report from the US. USDINR spot price is expected to trade in a range of 93.65 to 94.20,” Choudhary added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 102.04, up 0.49 per cent.

Brent crude, the global oil benchmark, was trading 2.04 per cent higher at USD 100.30 per barrel in futures trade.

On the domestic equity market front, the Sensex jumped 1,718.01 points to settle at 81,028.02, while the Nifty surged 493.75 points to 25,030.35.

Foreign institutional investors (FIIs) were net buyers on Thursday, purchasing equities worth Rs 14,974.68 crore, according to exchange data.