Despite ongoing tensions and the risk of conflict spillover in West Asia, the Indian rupee strengthened by 2 paise to 91.62 against the US dollar on Friday, buoyed by the United States' announcement of a 30-day waiver permitting Indian refiners to continue purchasing Russian oil.
Forex traders said that negative sentiment in domestic equity markets and outflows of foreign funds limited the rupee’s upward momentum despite a retreating US currency.
As the conflict in Iran intensifies — with Iran having announced the indefinite closure of the Strait of Hormuz — the United States on Thursday provided a temporary 30-day waiver to allow Indian refiners to purchase Russian oil.
US Treasury Secretary Scott Bessent stated on Thursday that "this stopgap measure will alleviate pressure caused by Iran's attempt to hold global energy hostage."
At the interbank foreign exchange market, the rupee opened at its previous session's closing level of 91.64 and rose 2 paise to 91.62 against the dollar.
The Indian rupee recorded a strong recovery of 41 paise to 91.64 on Thursday after a record loss of 97 paise on Wednesday.
Meanwhile, the dollar index, which gauges the dollar's strength against a basket of six currencies, was trading 0.37 per cent lower at 98.94.
Brent crude oil prices have also fallen by 1.05 per cent to $84.51 per barrel in futures trade.
Also read: Sensex plunges 500 points, Nifty falls 150 points in early trade
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