Mumbai: Due to foreign money inflows and a decline in crude oil prices, the rupee strengthened by 24 paisa to 82.10 in early trade on Friday.
The local stock market’s gains and the US dollar’s decline in early Asian trading both helped the rupee’s outlook.
The rupee started out stronger at 82.12 on the interbank foreign currency market and maintained that value during early trading. It fluctuated in early transactions between 82.16 and 82.10.
On Wednesday, the rupee’s closing rate to the dollar was 82.34, down 18 paisa. For Ram Navami on Thursday, the FX market was closed.
After the waning of the concerns of a banking contagion, FIIs have become net buyers in Indian markets. According to V K Vijayakumar, chief investment strategist at Geojit Financial Services, the absence of new bank failures and significant system stress has increased FII flows.
The dollar index, which measures the value of the dollar relative to a basket of six different currencies, recovered from early lows to close 0.05% higher at 102.20. Early Asian trading saw a decline, reaching 102.09.
Benchmark Brent crude futures for world crude oil fell 0.24 percent to $79.08 per barrel.
The 30-share BSE Sensex rocketed by 680.56 points or 1.17 percent to 58,640.65 on the local equities market, while the larger NSE Nifty climbed 191.75 points or 1.12 percent to 17,272.45 points.
According to exchange data, foreign institutional investors (FIIs) changed from sellers to buyers on Wednesday, purchasing shares worth Rs 1,245.39 crore.
