A softer greenback and declining US treasury yields supported the rupee in early trade on Friday.
The rupee gained 7 paise to 95.19 against the US dollar in early trade on Friday, supported by a softer greenback and declining US treasury yields. On Thursday, it ended 2 paise higher at 95.26.
According to forex traders, sustained inflows and an easing of the oil import burden would provide a stronger foundation for rupee appreciation. The immediate operating range for USDINR is 94.75-95.75.
The dollar index was trading at 101.75, lower by 0.27 per cent. Brent crude was trading lower by 1.05 per cent at USD 116.09 per barrel in futures trade.
“We expect the RBI’s presence to remain important in keeping currency moves orderly,” said Anindya Banerjee, Head of Commodity and Currency Research, Kotak NEO.
Sensex rose 138.77 points to 74,289.81 in early trade, while Nifty advanced 38.95 points to 22,967.10. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 943.60 crore on a net basis on Thursday, according to exchange data.
The IMF on Thursday said exchange rate flexibility should be the preferable policy response to help the Indian economy adjust to energy shocks, amid reports that the RBI resorted to massive market intervention to prop up the rupee.
Source: The New Indian Express
