Rupee Rises 14 Paise to 96.28 Against US Dollar in Early Trade

Mumbai:

On the interbank exchange, the rupee opened at 96.35 against the dollar and rose to 96.28, up 14 paise from its previous close.

The rupee depreciated for the fourth consecutive day on Thursday, falling 17 paise to settle at 96.42 against the US dollar.

The United States expanded its air strike campaign against Iran early Friday, increasingly hitting bridges as part of President Donald Trump’s threat to strike infrastructure to pressure Tehran to ease its grip on the Strait of Hormuz. Iran has launched new missile attacks against US-allied countries in West Asia and warned that its attacks will increase.

Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said, “Ongoing geopolitical uncertainties in West Asia have sustained demand for safe-haven assets, causing investors to remain cautious towards emerging market currencies, including the rupee. Rupee is expected to remain with a downtrend in the range of 96.00-96.50 for the day as the dollar index remains elevated and oil prices remain near US$ 85 per barrel.” he said.

Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, was traded at 100.78 with an increase of 0.02 percent.

Global oil reference Brent crude oil was traded at $84.83 per barrel, up 0.39 percent in futures.

According to stock exchange data, Foreign Institutional Investors sold shares worth 4,205.56 billion rupees on a net basis on Thursday.