The Indian rupee strengthened by 14 paise to reach ₹96.28 per U.S. dollar early on Friday, buoyed by a positive rebound in domestic equity markets.
Despite the rally, sustained foreign‑institutional investor (FII) outflows and elevated global crude prices—accentuated by heightened tensions in West Asia—continued to restrain further gains in the local currency, analysts noted.
At the interbank market, the rupee opened at ₹96.35 and subsequently climbed to ₹96.28, reflecting the 14‑paise uptick from its previous close.
The currency had depreciated for the fourth consecutive day on Thursday, falling 17 paise to end at ₹96.42 per dollar.
In the U.S., an expansion of the airstrike campaign against Iran earlier that day targeted strategic infrastructure, following President Donald Trump’s threat to intensify pressure on Tehran over the Strait of Hormuz. In response, Iran launched missile attacks against U.S. allied nations in West Asia and signaled inhabited escalation.
“Persistent geopolitical uncertainties in West Asia continue to elevate demand for safe‑haven assets and keep investors wary of emerging‑market currencies, including the rupee,” said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP. “We expect the rupee to trade within the ₹96.00–₹96.50 range today, with a moderate downside bias as the dollar index remains firm and oil prices hover near USD 85 a barrel.”
Meanwhile, the dollar index—an indicator of the greenback’s strength against a basket of six major currencies—traded slightly higher at 100.78 imparting a marginal 0.02 percentage‑point increase.
Brent crude, the global oil benchmark, wartained at USD 84.83 per barrel, reflecting a 0.39 percentage‑point rise in futures trading.
On the domestic equity front, the Sensex surged 480.95 points to 77,656.56 in early trading, while the Nifty climbed 125.05 points to 24,201.
Foreign institutional investors withdrew equities worth ₹4,205.56 crore on a net basis on Thursday, according to exchange data.