Rupee opens 4 paise higher on Friday, snapping a three-day losing streak as the Indian currency opened at 96.31 against the US dollar, supported by a softer greenback. The rebound follows a decline in the US Dollar Index, although elevated crude oil prices continue to pose risks for the rupee.
Rupee opens 4 paise higher amid weaker US dollar
The Indian rupee snapped its three-day losing streak on Friday, opening 4 paise higher at 96.31 against the US dollar aided by a weaker greenback.
The domestic currency had settled at 96.35 in the previous session.
The recovery in the rupee came after the dollar index, which measures the US currency against a basket of six major peers, slipped to a one-month low.
The dollar index steadied around 100.7 but remained on track for a weekly decline after softer-than-expected US inflation data eased expectations of an immediate Federal Reserve rate hike.
Dollar Index eases after softer US inflation data
While markets have largely ruled out a rate increase in July, expectations for September remain evenly split as investors weigh persistent inflation risks stemming from geopolitical tensions, analysts said.
However, gains in the rupee remained capped as Brent crude hovered near $85 per barrel amid escalating hostilities between the US and Iran, keeping investors cautious.
Brent crude rises while Asian markets decline
On the commodities front, the international benchmark Brent crude rose 1.48 per cent to $85.48 per barrel in early trade, while US West Texas Intermediate (WTI) crude gained 1.60 per cent to $80 per barrel.
Asian equities traded lower, with Japan’s Nikkei falling more than 4 per cent, Hong Kong’s Hang Seng declining around 2 per cent, and China’s Shanghai Composite shedding over 1 per cent.
Gold gains as investors seek safe-haven assets
Meanwhile, gold prices edged higher in the domestic market as escalating geopolitical tensions boosted demand for safe-haven assets, while silver prices traded lower.
On the MCX, gold futures for August delivery rose as much as 0.27 per cent to an intraday high of Rs 1,40,733 per 10 grams by 9:50 a.m. In contrast, silver futures for September delivery fell 0.36 per cent to an intraday low of Rs 2,15,233 per kg.
Read More:
Indian Rupee Against Dollar Gains 63 Paise, Closes Higher for Second Straight Session
Global Crude Oil Prices Hit Four-Week High as US-Iran Conflict Sparks Supply Fears
Gold and Silver Prices Rise on Safe-Haven Demand Amid Geopolitical Uncertainty
