The rupee surged 52 points to close at 93.89 (provisional) against the US dollar on Friday, as a softer US dollar, coupled with declining crude oil prices and easing concerns over import costs, supported investor sentiments.
Forex traders said a surge in domestic markets and fears of a slowdown in AI spending also supported the rupee. At the interbank foreign exchange market, the rupee opened at 94.50 and touched an intraday high of 93.82 and a low of 94.50.
The domestic unit closed the session at 93.89 (provisional), registering a gain of 52 paise over its previous close. On Thursday, the rupee settled 5 paise higher at 94.41 against the US dollar.
“We expect the rupee to trade with a positive bias on strength in domestic markets and rising FII inflows. Weakness in the dollar post US mid-term elections may also support the rupee,” said Anuj Choudhary, Research Analyst, Mirae Asset Sharekhan.
“Traders may take cues from the non-farm payrolls report from the US. USDINR spot price is expected to trade in a range of 93.65 to 94.20,” Choudhary added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 102.04, higher by 0.49 per cent. Brent crude, the global oil benchmark, was trading higher by 2.04 per cent at $100.30 per barrel in futures trade.