<a href="https://www.mid-day.com/business/business-news/article/rupee-appreciates-47-paise-to-9426-against-us-dollar-amid-higher-fcnr-b-deposit-mobilisation-23648123" target="_blank" rel="none noopener">The rupee</a> gained 5 paise to 94.46 against the US dollar in early trade on Friday, supported by optimism over rising foreign inflows and a rise in risk appetite.
Forex traders said the rupee is poised to gain strength, supported by strong underlying inflows and aggressive RBI intervention. However, higher crude oil prices and potential US-Iran tensions could limit further gains.
At the interbank foreign exchange market, the rupee opened at 94.53 against the US dollar, then gained ground to touch 94.46, registering a gain of 5 paise from its previous close.
On Thursday, the rupee extended its gaining momentum for the fifth straight session appreciating 22 paise to close at 94.51 against the US dollar.
India mobilised a record USD 127.23 billion through <a href="https://www.mid-day.com/business/business-news/article/india-may-receive-fcnr-b-deposits-up-to-usd-85-billion-sbi-report-23641803" target="_blank" rel="none noopener">foreign-currency deposits</a> under a special central-bank programme aimed at bolstering the country's foreign-exchange liquidity.
Including overseas foreign-currency borrowings (OFCB) and external commercial borrowings (ECB), total inflows under the measures reached USD 136.377 billion, according to RBI data.
"Overall, the FCNR story has given the rupee a strong shot in the arm, but the underlying fundamentals still carry their share of risk. 94.00&ndash;94.20 remains a strong support zone. Any negative surprise, especially from the oil front, could pull USDINR back up towards 95.00, 95.50 and eventually 96.00," CR Forex Advisors MD - Amit Pabari said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 99.05, higher by 0.15 per cent on safe-haven demand amid <a href="https://www.mid-day.com/news/world-news/article/donald-trump-turns-to-dual-economic-military-approach-in-latest-attempt-to-squeeze-iran-23648282" target="_blank" rel="none noopener">renewed US-Iran tensions</a>.
Brent crude, the global oil benchmark, was trading higher by 0.40 per cent at USD 95.90 per barrel in futures trade, on escalating US-Iran tensions and fears of disruption to oil flows through the Strait of Hormuz.
On the domestic equities market front, Sensex jumped 468.64 points to 76,621.50 in early trade, while the Nifty was trading up 42.10 points at 23,915.55.
Foreign institutional investors offloaded equities worth Rs 2,345.87 crore on a net basis on Thursday, according to exchange data.
This story has been sourced from a third party syndicated feed, agencies. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.

The Indian currency opened at 94.53 against the US dollar, then gained ground to touch 94.46, registering a gain of 5 paise from its previous close

Rupee gains 5 paise to 94.46 against US dollar on higher foreign inflows

Volkswagen to cut 1 lakh jobs by 2030; cites intense competition, change in demand and technology

At the interbank foreign exchange market, the rupee opened at 94.53 against the US dollar, then gained ground to touch 94.46, registering a gain of 5 paise from its previous close

Rupee rises 5 paise to 94.46 against US dollar on higher foreign inflows

Trending Stories

Latest Photos

Latest Videos

Latest Web Stories

Mid-Day Fast

Home / Business / Business News / Article / Rupee rises 5 paise to 94.46 against US dollar on higher foreign inflows