Rupee jumps 77 Paise to close at 95.08 against US Dollar
The Indian rupee recorded a strong recovery on Friday, surging 77 paise to close at 95.08 against the US dollar, supported by a sharp decline in global crude oil prices and positive sentiment in domestic equity markets.
Forex traders said the rally was triggered after US President Donald Trump indicated that a peace deal with Iran could be signed soon, easing concerns over disruptions in global oil supplies. The development led to a significant fall in crude oil prices, providing relief to oil-importing countries such as India.
Brent crude, the global benchmark, fell more than 4 per cent to trade near USD 86.5 per barrel. Lower oil prices typically strengthen the rupee by reducing India's import bill and easing pressure on foreign exchange reserves.
In the interbank foreign exchange market, the rupee opened at 95.40 and moved between 94.95 and 95.53 during the session before settling at 95.08, recovering sharply from Thursday’s close of 95.85 against the dollar.
Market experts noted that the rupee's movement in recent days has closely tracked fluctuations in crude oil prices. A weaker US dollar and strong gains in Indian stock markets further boosted investor confidence.
On the domestic equity front, benchmark indices ended the day with substantial gains. The Sensex surged 1,695 points to close at 75,527.95, while the Nifty climbed 461 points to settle at 23,622.90.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of major global currencies, slipped 0.20 per cent during the session.
Analysts expect the rupee to remain range-bound in the coming sessions, with crude oil prices and global geopolitical developments likely to remain key drivers.
