Rupee Gains 21 Paise to 87.75 Against US Dollar on Softer Greenback, RBI Support
Mumbai: The rupee appreciated by 21 paise to 87.75 against the US dollar in early trade on Friday, driven by a weaker American currency, renewed foreign fund inflows, and likely intervention by the Reserve Bank of India (RBI).
Forex traders said that a softer dollar against major global currencies, coupled with lower crude oil prices, boosted investor sentiment.
At the interbank foreign exchange market, the rupee opened at 87.91 and strengthened to an early high of 87.75 per US dollar, marking a 21-paise gain from its previous close. On Thursday, the domestic currency had advanced 12 paise to settle at 87.96, extending its gains for the second consecutive session.
“After weeks of drifting in uncertain waters, the currency now seems to have found a favourable current — buoyed by a softer US dollar, returning investor confidence, and the Reserve Bank’s steady hand at the helm,” said Amit Pabari, Managing Director of CR Forex Advisors.
He added that a fall below 87.50 could pave the way for further appreciation towards 86.80–87.00, while the 88.30–88.40 range remains a strong resistance zone.
Meanwhile, the dollar index — which measures the greenback’s performance against a basket of six major currencies — was down 0.16% at 98.17. Brent crude futures slipped 0.26% to USD 60.90 per barrel.
In the domestic equity market, the Sensex fell 261.58 points to 83,206.08 in early trade, while the Nifty declined 76.7 points to 25,508.60.
According to exchange data, Foreign Institutional Investors (FIIs) purchased equities worth ₹997.29 crore on Thursday. “After weeks of outflows, this return of foreign money signals renewed faith in India’s growth story and stability. When capital begins flowing back, currencies often follow the same direction,” Pabari noted.
Separately, Commerce and Industry Minister Piyush Goyal said India has implemented several free trade agreements (FTAs) with developed economies and is in active talks with countries including the US, the EU, Oman, Chile, and New Zealand.
“We have signed FTAs with many developed countries in the last three years and are now in active dialogue with several more. It clearly shows that India remains a preferred destination for both investment and bilateral trade,” Goyal said.
