Rupee rises 18 paise: Bright spot against dollar today!
Forex traders said weak crude oil prices and positive domestic markets supported the local unit, while sustained foreign fund outflows weighed on the local unit
The Indian rupee appreciated 18 paise to 86.26 against the US dollar in morning trade on Friday, January 24, 2025, supported by positive domestic equities and a soft American currency index.
Market Influences
Forex traders noted that weak crude oil prices and positive domestic markets bolstered the local unit, while sustained foreign fund outflows continued to weigh on it. Traders further highlighted that the upcoming Union Budget will play a crucial role in shaping market sentiment and the rupee's trajectory.
Trading Performance
At the interbank foreign exchange, the rupee opened at 86.31 and touched 86.26 against the US dollar, marking a rise of 18 paise from its previous close. The local unit also reached 86.33 against the US dollar in initial trade. On Thursday, the rupee had declined by 9 paise, settling at 86.44 against the dollar.
Resilience and Future Outlook
The rupee has shown signs of resilience, appreciating over the past two trading sessions due to a weakening dollar. Additionally, upcoming inflows from fundraising activities by IREDA of USD 570 million are expected to provide further support to the rupee, according to CR Forex Advisors MD Amit Pabari. He mentioned that the USD/INR pair is expected to trade within the range of 86.20–86.80, with a break below 86.20 potentially leading to further downside toward levels of 85.80–86.00.
Additional Market Data
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.15% at 107.88. Brent crude, the global oil benchmark, fell by 0.22% to USD 78.12 per barrel.On the domestic equity market front, both benchmark indices Sensex and Nifty opened positively. The 30-share sensitive index Sensex was trading up by 166.71 points or 0.22% at 76,687.09, while Nifty was higher by 49.30 points or 0.21% at 23,254.65 points.Foreign Institutional Investors (FIIs) remained net sellers in the capital markets on Thursday, offloading shares worth approximately Rs 5,462.52 crore, according to exchange data.
(Except for the headline, nothing has been changed by All India News Network in the PTI copy.)
