The Indian rupee opened stronger against the US dollar on Friday. The local currency strengthened by 18 paise to open at Rs 86.48 against the greenback, according to Bloomberg. It had closed at Rs 86.66 on Thursday.
Rupee is likely to open stronger around 86.55 on broad Dollar weakness and likely to trade in 86.40-86.65 range with appreciation bias, according to analysts at India Forex And Asset Management.
"Today also, the opening is higher at 86.46, with rupee expected to gain towards 86.20 in a slow and steady manner as long positions are cut. The RBI would be satisfied with the fall in REER in January-25 and may allow some more appreciation," said Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP.
Brent oil prices extended gains on Friday, as they rose to $76.38 per barrel, as falling inventories of US gasoline and distillate raised expectations of a solid demand, while concerns over Russian disruptions lent support to the prices. US oil stockpiles, however, rose as seasonal maintenance led to lower processing. Expectations for a potential peace deal between Russia and Ukraine which could ease sanctions faded, as Ukraine hardened it's stance due to negotiations without Kyiv, according to Bhansali.
The dollar index fell to a low of 106.44 as Euro rose to 1.05001, while Great British Pound rose to 1.2670 and yen was stable at 150.44 despite a rise in Japan inflation. Dollar was set for a third weekly drop as traders saw that start of second Trump innings has been mostly bluster on tariff front, he added.
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