The rupee on Friday climbed 24 paise to 95.23 against the US dollar after a reduction in crude oil prices eased pressure on the currency in early trade.
The strength in the rupee was noted following the softening of the US dollar and lower Treasury bond yields.
FII outflows and uncertainty over fresh tensions in West Asia weighed on the local unit, while a strong start to the day’s trading in the domestic equity markets provided support, according to forex traders.
At the interbank foreign exchange market, the rupee opened at 95.23 against the greenback, up 24 paise from its previous close.
The currency had appreciated 1 paisa to settle at 95.47 against the US dollar on Thursday.
Traders reported dollar selling by state-run banks, widely viewed as acting on behalf of the Reserve Bank of India (RBI).
The intervention helped the rupee break through the 95.50 level and maintain gains through Thursday’s session.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 100.64, down 0.25 per cent.
Besides, the easing of crude oil prices has also aided the recovery of the Indian rupee. Foreign institutional investors offloaded equities worth Rs 532.86 crore on a net basis on Thursday, according to exchange data.
Also read: Sensex gains 653 pts, Nifty gains 161 pts in early trade
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