The Indian rupee closed 21 paise stronger at 85.49 against the US dollar on Friday in comparison to its previous close of Rs 85.70 on Thursday. The currency's advance comes amid ongoing market uncertainty and geopolitical tensions.
The Indian rupee opened 20 paise stronger against the US dollar on Friday, trading at Rs 85.70.
"The Indian Rupee strengthened on Friday morning trade, bolstered by weak US data that boosted expectations of rate cuts by the Fed," said Sriram Iyer, Senior Research Analyst at Reliance Securities.
The rupee is facing pressure after a recent decline from the 86.70 zone. The price is hovering near the 20-day SMA, which is acting as dynamic support. "A break below this level may lead to further downside towards 85.00 and 84.75," said Ritesh Bhansali, director, Mecklai Financial Service Ltd.
Additionally, the US dollar index fell to its lowest since early 2022, as dovish signals from the Federal Reserve and the White House fueled expectations of rate cuts.
Fed Chair Powell suggested the easing cycle would have continued in absence of tariff-driven inflation, while reports indicate US President Donald Trump may nominate a more dovish Fed Chair as early as September or October The market now turns to today's PCE inflation data for confirmation, said Bhanshali.
Oil rose higher on Friday after a report by the US government has shown a sharp decline in the American crude stockpile. Investors are also awaiting the July 6 OPEX+ meeting. Oil is likely to post its biggest weekly decline in nearly two years with Brent down nearly 12% for the week.
While Brent crude and West Texas Intermediate crude oil rose 0.72% each.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
