Rupee gains 20 paise against US dollar as RBI support kicks in, greenback weakens
The Indian Rupee appreciated against the US dollar due to RBI interventions and a weakening dollar index. Despite this, gains were tempered by rising crude oil prices and initial volatility in domestic stock markets.
Why it matters
Currency fluctuations impact inflation and import costs, making this a critical indicator for the Indian economy.
NEW DELHI: Rupee began Friday on a strong note, gaining 20 paise from its previous close to 94.79 against the US dollar. The rise came as American currency weakened and the impact of the Reserve Bank of India's structural forex interventions supported the unit.The gains, however, remained limited amid elevated crude oil prices and a negative beginning at Dalal Street.In the interbank foreign exchange market, the rupee began the session at 94.75 before moving to 94.79. The gain follows Thursday's 18-paise appreciation, which took the currency to a closing level of 94.99 against the dollar.Anuj Choudhary, research analyst at Mirae Asset Sharekhan, told PTI, "Decline in dollar index and softening of US treasury yields also supported the rupee. However, a surge in crude oil prices capped sharp gains.
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