The Indian rupee continued its upward trend for the second consecutive trading day on Friday, strengthening by 63 paise to close at 95.73 against the US dollar. This rise was supported by lower crude oil prices, positive market sentiment, and expectations of intervention by the Reserve Bank of India (RBI) to stabilize the currency. Starting at 96.30 per dollar, the rupee saw significant gains throughout the day, reaching a high of 95.30 and a low of 95.68 before settling at 95.73.
Market analysts attributed this recovery to the RBI’s active involvement post its USD/INR buy-sell swap announcement and the easing of geopolitical tensions, which led to a decrease in imported commodity prices. Investor confidence also improved following remarks by US Secretary of State Marco Rubio indicating positive diplomatic progress regarding the Iran situation. These developments alleviated concerns about global energy market disruptions, benefiting emerging-market currencies like the rupee.
The rupee’s positive trajectory was further supported by a drop in US Treasury yields and the strength of Indian equities. Both the Sensex and Nifty, key stock indices, closed the session on a high note, with the Sensex climbing 231.99 points to 75,415.35 and the Nifty advancing 64.60 points to 23,719.30. Despite these gains, analysts warned that geopolitical factors could pose risks to the rupee’s stability. They emphasized the crucial role of RBI interventions in managing volatility and restoring confidence in the forex market. Market experts predict a near-term rupee range between 95.00 and 95.90.
