Rupee Strengthens Past 84 A Dollar, Rises To Highest In Seven Months
The Indian rupee strengthened as much as 0.85% to 83.78 against the greenback, the highest in seven months.
The Indian rupee opened 39 paise stronger against the US dollar on Friday at 84.09 a dollar. It strengthened as much as 0.85% to 83.78 against the greenback, the highest in seven months.
The local legal tender had clocked its highest close since November 2024 on Wednesday at 84.49, according to Bloomberg data.
According to Abhishek Goenka, founder & CEO of India Forex Asset Management, "FPI dollar selling caused the USDINR pair to break the recent 84.95 low, and thereafter some stops were triggered. Also, the RBI does not seem to be buying dollars too aggressively."
He added, "Volatility has certainly returned under the new RBI regime. Intraday ranges which used to be hardly 5-10p have now widened to 30-60p, indicating that the regime is open to allowing the rupee to move more freely."
While the US dollar has declined 0.25% to 99.81, the Brent Crude has pulled itself out of a long-running slump and gone up 0.49% at 62.62, as of 9:10 a.m. on Friday.
Oil prices increased, reducing a significant weekly decline, as market participants considered potential US-China trade discussions and new sanctions risks to Iranian oil exports against a possible supply increase from OPEC+, according to a Bloomberg report.
The trade range for the day is 84.45-84.80 with sideways price action as per the IFA Global CEO.
"The rupee has strengthened to a five-month high, defying recent geopolitical concerns," Bloomberg reported, adding, "The currency outperformed most Asian peers on Wednesday, bolstered by optimism over a potential trade deal between India and the US, renewed foreign investment in local shares this month, and a broadly weaker dollar."
