Mumbai: The Indian rupee appreciated by 16 paise to settle at 85.39 against the US dollar on Friday, supported by a weakening greenback and a dip in global crude oil prices. The sentiment was further buoyed by optimism surrounding potential trade agreements between the US and other Asian nations.
According to forex traders, Asian currencies gained momentum after US President Donald Trump announced a new trade deal with Vietnam, raising hopes of more such agreements ahead of the key July 9 deadline.
At the interbank foreign exchange, the rupee opened at 85.44, touched a high of 85.30, and dipped to a low of 85.50 before finally closing at 85.39, marking a 16-paise gain over Thursday’s close of 85.55.
“Falling US dollar and a softening tone in crude oil prices are supporting the rupee. However, uncertainties around trade tariffs could restrict further sharp gains,” said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan.
The US Dollar Index, which measures the currency against a basket of six peers, fell 0.24% to 96.94, while Brent crude futures slipped by 1.18% to USD 67.99 per barrel.
Choudhary added that the USD/INR spot rate may continue to trade in a narrow band of 85.10 to 85.70 in the short term.
In the domestic equity market, benchmark indices closed higher, with the Sensex gaining 193.42 points to 83,432.89 and the Nifty advancing 55.70 points to 25,461.00.
Meanwhile, foreign institutional investors (FIIs) remained net sellers, offloading equities worth ₹1,481.19 crore on Thursday, as per exchange data.
On the macroeconomic front, India’s services sector registered robust growth in June, hitting a ten-month high. The HSBC India Services PMI rose from 58.8 in May to 60.4 in June, driven by strong demand, job creation, and a surge in new business orders.
