Rupee rises 14 paise in early trade as Dalal Street cheers; oil adds limited gains
The Indian Rupee strengthened against the US dollar in early trade, supported by positive sentiment in equity markets, despite foreign fund outflows and firm crude oil prices. Geopolitical tensions in the Middle East, specifically US airstrikes against Iran and Iran's retaliation, continue to influence market caution and demand for safe-haven assets.
Why it matters
This article highlights the immediate impact of global geopolitical events, particularly the US-Iran conflict, on international financial markets, currency exchange rates, and commodity prices like crude oil, affecting investor sentiment and economic stability.
Rupee opened Friday on a stronger note against the US dollar, rising 14 paise in early trade as upbeat sentiment in equity markets supported the currency. However, gains remained capped due to sustained foreign fund outflows and firm crude oil prices amid escalating tensions in the Middle East, according to forex traders.At the interbank foreign exchange market, the rupee opened at 96.35 against the US dollar before strengthening to 96.28, recovering 14 paise from its previous close of 96.42.The domestic currency had ended lower for the fourth consecutive session on Thursday, declining 17 paise to settle at 96.42 against the greenback.Market participants continued to monitor developments in the Middle East after the US expanded its airstrike campaign against Iran early on Friday, increasingly targeting bridges as part of President Donald Trump's threats to strike infrastructure to pressure Tehran over the Strait of Hormuz.
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