Rupee surges 77 paise to close at 95.08 against US dollar

The rupee strengthened sharply by 77 paise to close at 95.08 against the US dollar, supported by falling global oil prices after reports of a possible US-Iran deal, a weaker dollar index, and strong gains in domestic equity markets

Mumbai: The rupee surged 77 paise to close at 95.08 (provisional) against the greenback on Friday as global oil prices fell sharply after US President Donald Trump indicated an imminent deal with Iran.

A firm trend in domestic equity markets and a weaker American currency also supported the rupee during the day, forex traders said. Trump has said a deal to end the war with Iran is nearly complete, and is expected to be signed over the weekend in Europe, as he called off military strikes on the Islamic Republic hours after threatening to take control of its oil industry.

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Following Trump’s remarks, international crude oil prices fell with Brent crude — the global oil benchmark — trading lower by 4.25 per cent at USD 86.54 per barrel in futures trade.

At the interbank foreign exchange, the rupee opened at 95.40 and traded in the range of 94.95-95.53 before settling at 95.08 (provisional), up 77 paise from its previous close.

The rupee had plunged 60 paise to settle at 95.85 against the US dollar on Thursday. “The rupee rose as oil prices fell to USD 88.58 levels after three months. The rupee has hovered between 95 and 95.80 in the past few days, moving with the prices of oil,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.

“For Monday, we expect the rupee to remain in the range of 94.75 to 95.75. The one-month premiums were slightly higher at 2.95 per cent while the one-year premiums were at 2.85 per cent,” he said.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.65, down 0.20 per cent.

On the domestic equity market front, Sensex soared 1,695.40 points to settle at 75,527.95, and Nifty climbed 461.30 points to 23,622.90.

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