The rupee has risen 10 paise to 92.41 against the US dollar in early trade on Friday, even as the USD/INR pair faces risks from escalating tensions, especially the US-Iran conflict.
Forex traders said the rupee is likely to see high volatility in the coming days as the intra-day deadline for the RBI's instructions to banks to curb their overnight position to USD 100 million closes today.
At the interbank foreign exchange market, the rupee opened at 92.58 against the US dollar, then gained ground to touch 92.41 against the US dollar in initial trade, registering a gain of 10 paise over its previous session’s close.
A day earlier, the rupee settled with a marginal gain of 3 paise at 92.51 against the dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was up by 0.7 per cent at 98.69 as the safe-haven demand has come down after the two-week Iran-US ceasefire.
However, with the ongoing uncertainty, the US dollar is now getting bids at lower levels.
On the domestic equity markets, both indices witnessed a sharp rebound in early trade. The 30-share BSE Sensex and NSE Nifty 50 gained strength on Friday, the last day of weekly trading.
Foreign Institutional Investors offloaded equities worth ₹1,711.19 crore on Thursday, according to exchange data.
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