The rupee rose 5 paise to 95.53 against the US dollar in early trade on Friday following an understanding reached between the United States and Iran to continue the ceasefire for another two months.
Forex traders said the agreement is expected to keep trade flowing through the Strait of Hormuz while the two nations continue negotiations on Iran’s nuclear programme.
At the interbank foreign exchange market, the rupee opened at 95.77 against the US dollar, then gained ground and reached 95.53 in early trade, registering a 5-paise strength from its previous trading session.
In the initial trade, the rupee also touched 95.78 against the American currency.
Earlier on Wednesday, the rupee climbed 12 paise against the dollar and closed at 95.58 at the end of the trading session.
Both equity and forex markets remained closed on Thursday on account of Eid al-Adha.
The US and Iran delegations, according to fresh reports, reached a tentative agreement on Thursday to extend their ceasefire in the three-month-old war by 60 days.
The announcement led to a rise in stock markets, a drop in crude oil prices, and a marginal surge in gold and silver despite minimal domestic demand.
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