The Indian rupee rose slightly to 95.17 against the US dollar on Friday, supported by foreign capital inflows but weighed down by cautious global developments and rising crude oil prices, while domestic markets remained subdued.
The rupee edged higher on Friday, ending at 95.17 against the US dollar, a gain of 5 paise from the previous close, even as traders remained wary of global risk sentiment. In interbank trade, the currency opened at 95.27 and moved within a narrow band of 95.16 to 95.28 through the session, suggesting that buyers and sellers were largely balanced.
Forex dealers said the local unit drew some support from foreign capital inflows, but gains were capped by caution over fragile negotiations between Iran and Oman linked to the Strait of Hormuz, as well as an overnight rise in crude oil prices. Brent crude eased only slightly in futures trade, while the dollar index was marginally lower, leaving the broader backdrop mixed for emerging-market currencies.
Domestic markets also offered little direction. The Sensex fell 455.59 points to 78,499.17 and the Nifty slipped 65.35 points to 24,570.65, although foreign institutional investors bought equities worth ₹480.24 crore on a net basis, according to exchange data. Separately, Reserve Bank of India figures released on Friday showed India’s foreign exchange reserves rose by $10.512 billion to $692.866 billion in the week ended July 31, underscoring the size of the country’s external buffer even as the currency continued to respond to global headlines and US data expectations.
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