The Indian rupee on Friday appreciated by 23 paise to 96.65 against US dollar in early hours of session supported by slight softening in US dollar and suspected intervention by Reserve Bank of India.
Rupee opened on positive note with dollar index down to 102 levels and Brent down to around $103 per barrel after US President Donald Trump said attack on Iran will happen only after midterm elections.
Indian Rupee Gains as Dollar Weakens
At the interbank foreign exchange market, rupee opened at 96.74 then gained to touch 96.65, up 23 paise over previous close.
Experts said that the US dollar index declined toward 102 today, extending losses as Treasury yields fell following a well-received 30-year bond auction, signalling continued investor demand for long-dated government debt,”
Crude Oil Prices and US-Iran Developments in Focus
They further noted that lower oil prices also weighed on inflation concerns after President Trump cited productive US-Iran discussions and ruled out an attack before the midterm elections.
Markets assigned an 82 per cent probability to the Federal Reserve holding rates unchanged this month, while December rate hike odds stood near 81 per cent, they added.
Federal Reserve Rate Outlook Adds to Market Uncertainty
Meanwhile, Fed Governor Christopher Waller said further increases would likely be needed to return inflation to the 2 per cent target but emphasised policymakers retained flexibility over the pace of tightening, according to them.
On Thursday, rupee had depreciated 13 paise to close at 96.88 against US dollar.
Additionally, equity markets showed positive performance with opening higher amid buying in IT sector shares.
Sensex and Nifty Open Higher
Sensex increased 183.43 points or 0.26 per cent on opening, while Nifty opened at 22,314.95, up 83.15 points or 0.37 per cent.
Foreign institutional investors (FIIs) on Thursday offloaded equities worth Rs 12,943 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 10,703 crore.
FIIs have sold equities worth Rs 36,210 crore through exchanges in October so far.
Read More:
Rupee Opens 4 Paise Higher Against US Dollar Amid Softer Dollar Index
Crude Oil Prices Surge Nearly 2% as US-Iran Conflict Escalates
