Overnight rise in crude oil prices and recovery in the dollar put pressure on the rupee. Brent crude futures rose 2.04% to trade at $100.30 a barrel
Rupee Bounces Back! Climbs To Rs 94.08: The Indian rupee strengthened to Rs 94.08 against the US dollar on Friday. This is the rupee’s strongest intraday level since May 7, marking a nearly 6-month high. Notably, the rupee bounces back after a weak start.
The rupee opened at 94.50 against the dollar on Friday. It had closed at 94.41 on Thursday, an initial loss of 9 paise. After this, the rupee gradually recovered. It first improved to 94.36 and then strengthened further to 94.08.
According to forex traders, overnight rise in crude oil prices and recovery in the dollar put pressure on the rupee. Brent crude futures rose 2.04% to trade at $100.30 a barrel.
India imports a large portion of its crude oil needs, so when crude oil becomes expensive, the demand for dollars increases and the rupee comes under pressure.
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On the other hand, the dollar index, which shows the strength of the dollar against the 6 major currencies of the world, rose 0.17% to 101.71.
Meanwhile, the domestic stock market witnessed mixed trading on Friday. The Sensex gained 33 points to reach 79,343.06, while the Nifty fell 52.95 points to 24,477.40.
The rupee’s appreciation was supported by a weaker US Dollar Index, a sharp correction in oil prices, and improved global risk sentiment following the US midterm election results, said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
