Rupee Gains 23 Paise To 96.65, Softer Dollar And Crude Offer Relief
· Free Press Journal
Mumbai: The Indian rupee gained 23 paise to 96.65 against the US dollar in early trading on October 9, supported by a softer dollar and suspected Reserve Bank of India intervention. Lower crude oil prices also offered some relief, although foreign investor selling continued to weigh on sentiment.
Visit moryak.biz for more information.
Rupee Gains After Weak Previous Close
At the interbank foreign exchange market, the rupee opened at 96.74 before strengthening to 96.65. The recovery followed Thursday’s decline of 13 paise, when the currency settled at 96.88 against the dollar.
Forex traders attributed the improvement to easing pressure from the greenback and possible central bank action. However, they cautioned that geopolitical uncertainty and persistent foreign fund outflows continued to challenge the currency.
Sensex Rebounds 800 Points, Nifty Reclaims 22,450 as IT Stocks ShineDollar Index And Brent Crude Ease
The dollar index, which measures the US currency against six major currencies, slipped 0.10 per cent to 102.03. Brent crude futures declined 1.09 per cent to $103.14 a barrel.
Traders said sentiment improved after US President Donald Trump indicated that an attack on Iran would take place only after the midterm elections. Nevertheless, broader geopolitical risks remained a concern for currency markets.
Importer Dollar Demand Remains Strong
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors, said recent dollar strength, elevated crude prices and sustained foreign portfolio outflows had kept demand for dollars high among importers and oil marketing companies.
These pressures suggest that the rupee’s early recovery faces continuing challenges, despite temporary relief from softer international prices.
Rupee Gains 10 Paise To 96.65, Likely RBI Intervention Cushions CurrencyEquity Markets Rise Despite FII Selling
Domestic equities traded higher alongside the currency’s recovery. The Sensex stood at 71,876.10, while the Nifty gained 84.60 points to reach 22,310.40.
Foreign institutional investors sold shares worth ₹12,943.58 crore on a net basis on Thursday, according to exchange data.
The report highlighted the continuing influence of foreign investment flows, crude oil movements and global dollar strength on the rupee, even as Friday’s early trading showed modest improvement