Rupee rises 14 paise in early trade as Dalal Street cheers; oil adds limited gains

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. Iran, in response, launched fresh missile attacks against US-allied nations in the region and warned that its attacks would intensify."Continued geopolitical uncertainties in West Asia sustained demand for safe-haven assets and kept investors cautious towards emerging-market currencies, including the rupee. Rupee is expected to remain in the range of 96.00-96.50 for the day with a downside bias as dollar index remains up and oil prices remain near USD 85 per barrel," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.Meanwhile, the dollar index, which measures the US currency against a basket of six major currencies, edged up 0.02 per cent to 100.78.Brent crude, the global oil benchmark, climbed 0.39% to $84.83 per barrel in futures trade.Dalal Street also traded higher in early deals, with the Sensex advancing almost 800 points to 77,981.76 and Nifty50 nearing 24,200 levels.Exchange data showed Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 4,205.56 crore on Thursday.Get the latest business news and top stories. Download the TOI App.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.