The rupee appreciated sharply by 65 paise to 95.20 against the US dollar in early trade on Friday after global crude oil prices dropped following US President Donald Trump’s hint of a possible peace deal with Iran. A weaker greenback and positive sentiment in domestic equity markets provided further support to the local currency, according to forex traders.
At the interbank foreign exchange market, the rupee opened at 95.40 before climbing to 95.20 against the US dollar.
On Thursday, the rupee had lost nearly 60 paise to settle at 95.85 at the close of the previous trading session.
“The rupee opened stronger on Friday, fuelled by a sharp retreat in global crude oil prices. This relief comes in the wake of statements from US President Donald Trump indicating an imminent deal with Iran and the cancellation of planned military strikes,” said Aamir Makda, commodity & currency analyst at Choice Broking.
He added that the rupee is expected to maintain an upward trend between 95 and 95.30 throughout the day.
The Reserve Bank of India (RBI) has recently rolled out a series of aggressive measures to stimulate dollar inflows and prevent further depreciation of the rupee.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.75, down 0.11 per cent.
Also read: Crude oil prices fall as Trump calls off further strikes on Iran
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