Rupee Gains 20 Paise To 94.79, Softer Dollar And RBI Measures Offer Support
· Free Press Journal
Mumbai: The rupee strengthened by 20 paise to 94.79 against the US dollar in early trade on Friday, October 16, supported by a softer American currency and the continuing impact of Reserve Bank of India forex measures.
Lower US Treasury yields also helped the Indian currency, although elevated crude oil prices and weaker domestic equities limited its advance.
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Rupee Gains 31 Paise To 94.86, RBI Measures And Softer Oil Support RecoveryRupee Extends Gains Against Dollar
At the interbank foreign exchange market, the rupee opened at 94.75 before moving to 94.79 against the dollar.
The currency had closed Thursday at 94.99, after appreciating 18 paise during that session.
Friday’s early movement reflected a firmer rupee against its previous close, even as it surrendered some of the strength seen at the opening.
Dollar Weakness And RBI Measures Help
Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, attributed the recovery to a declining dollar index and softer US Treasury yields.
The RBI’s structural interventions in the foreign exchange market also continued to support sentiment towards the domestic currency.
The dollar index, which measures the greenback against six major currencies, declined 0.54 per cent to 102.
Choudhary nevertheless highlighted mixed US economic signals. Producer price inflation exceeded expectations, retail sales beat forecasts and weekly unemployment claims broadly matched estimates.
Rupee Gains 44 Paise To 94.92, RBI Measures Extend Currency RecoveryCrude Oil Prices Limit Upside
Brent crude futures traded 0.54 per cent lower at $105.35 a barrel. Despite the decline, the benchmark remained elevated, restricting the rupee’s gains.
Oil prices therefore remained an important external factor alongside dollar movements and US bond yields.
The currency’s early recovery occurred against this combination of supportive financial conditions and continuing energy-related pressure.
Equity Weakness And FII Selling Weigh
Domestic stocks declined in early trading. Sensex fell 113 points to 74,187, while Nifty dropped 27.20 points to 22,967.15.
Foreign institutional investors sold Indian equities worth ₹5,285.37 crore on Thursday, according to exchange data.
The outflows and subdued stock market performance remained counterweights to the benefits from dollar weakness and RBI intervention.