Rupee rises 19 paise against US dollar in early trade
The rupee appreciated 19 paise against the US dollar in early trade as the dollar index eased from a 15-month high. However, traders said strong importer demand continued to weigh on the currency despite supportive global cues and lower crude oil prices
Mumbai: The rupee appreciated 19 paise to 95.16 against the US dollar in early trade on Friday as the dollar index retreated from its recent 15-month high.
Forex traders said that despite a weaker dollar index and lower crude oil prices, the rupee is still facing pressure from strong dollar demand from importers and corporate hedgers.
At the interbank foreign exchange market, the rupee opened at 95.20 and then touched 95.16 against the US dollar, registering a gain of 19 paise from its previous close.
On Thursday, the rupee pared its initial gains and settled on a negative note, down 19 paise at 95.35 against the US dollar.
Despite a weaker dollar index and lower crude oil prices, the rupee weakened on Thursday.
“If the rupee cannot strengthen on positive global cues, any negative development could easily push USDINR towards the 95.80 to 96.00 zone,” CR Forex Advisors MD Amit Pabari said.
Pabari further said that the Reserve Bank of India is focused on rebuilding its forex reserves, which have declined from a February peak of USD 728.49 billion to around USD 672.6 billion. Hence, the central bank has less room to allow the rupee to appreciate freely, “even when global conditions are supportive,” he said.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.81, down from its recent 15-month high of 101.6.
Meanwhile, Brent crude, the global oil benchmark, was trading 0.63 per cent lower at USD 72.25 per barrel in futures trade.
On the domestic equity market front, the Sensex jumped 545.89 points to 78,048.01 in early trade, while the Nifty surged 173.85 points to 24,346.90.
Foreign institutional investors sold equities worth Rs 311.82 crore on a net basis on Thursday, according to exchange data.
Foreign investors extended their selling spree in June, withdrawing Rs 49,340 crore (USD 5.16 billion) from Indian equities, triggered by a combination of early-month global risk aversion, a preference for developed markets, soaring US bond yields and stretched valuations in the domestic market.
According to data from the Central Depository Services (India) Ltd, the total withdrawals by Foreign Portfolio Investors (FPIs) from Indian equities have surged to Rs 2.7 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore withdrawn during the entire calendar year 2025.
