The rupee gained 14 paise to 96.28 against the US dollar in early trade on Friday buoyed by positive sentiments at the domestic equity markets.
However, heavy FII outflows and higher global crude oil prices amid heightened tensions in West Asia prevented further gains in the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 96.35 against the greenback before rising further to 96.28, up 14 paise from its previous close.
The <a href="https://www.mid-day.com/business/business-news/article/rupee-continues-to-weaken-falls-48-paise-amid-west-asia-crisis-rising-crude-oil-prices-23639686" target="_blank" rel="none noopener">rupee </a>depreciated for the fourth straight day on Thursday, shedding 17 paise to settle at 96.42 against the US dollar. The US expanded its airstrike campaign against Iran early on Friday by increasingly hitting bridges, part of President Donald Trump's threats to start striking infrastructure to pressure Tehran to ease its chokehold on the Strait of Hormuz.
Iran launched new missile attacks against US-allied nations in West Asia and warned that its attacks would escalate.
"Continued <a href="https://www.mid-day.com/news/world-news/article/us-intensifies-strikes-on-iran-as-tensions-escalate-over-strait-of-hormuz-23640010" target="_blank" rel="none noopener">geopolitical uncertainties in West Asia</a> 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 gauges the greenback's strength against a basket of six currencies, was trading marginally up by 0.02 per cent at 100.78.
Brent <a href="https://www.mid-day.com/business/business-news/article/crude-oil-futures-rise-to-rs-7671-per-barrel-on-spot-demand-23640080" target="_blank" rel="nofollow noopener">crude</a>, the global oil benchmark, was trading 0.39 per cent higher at USD 84.83 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 480.95 points to 77,656.56 in early trade on Friday while the Nifty was up 125.05 points to 24,201.
Foreign Institutional Investors offloaded equities worth Rs 4,205.56 crore on a net basis on Thursday, according to exchange data.
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The rupee rose 14 paise to 96.28 against the US dollar in early trade on Friday buoyed by positive sentiments at the domestic equity markets

Rupee rebounds, appreciates 14 paise to 96.28 against US dollar 

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The rupee gained 14 paise to 96.28 against the US dollar in early trade on Friday buoyed by positive sentiments at the domestic equity markets, though heavy FII outflows and higher global crude oil prices prevented further gains

Domestic equity markets boost rupee, gains 14 paise to 96.28 against US dollar

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Home / Business / Business News / Article / Domestic equity markets boost rupee, gains 14 paise to 96.28 against US dollar