The Indian rupee snapped a three-day losing streak on Friday, opening 4 paise higher at 96.31 against the U.S. dollar, supported by a weaker U.S. currency after softer-than-expected American inflation data.
The domestic currency had closed at 96.35 in the previous trading session.
The rupee’s recovery followed a decline in the U.S. dollar index, which slipped to a one-month low after easing inflation figures reduced expectations of an immediate interest rate hike by the U.S. Federal Reserve. While markets have largely ruled out a rate increase in July, investors remain divided over the possibility of a September hike.
Despite the gains, the rupee’s upside remained limited as rising geopolitical tensions between the United States and Iran kept global markets on edge.
International oil prices also remained elevated, with Brent crude rising 1.48 per cent to US$85.48 per barrel, while West Texas Intermediate (WTI) crude climbed 1.60 per cent to US$80 per barrel, raising concerns over higher import costs for India.
Asian equity markets traded sharply lower during the session, with Japan’s Nikkei falling more than 4 per cent, Hong Kong’s Hang Seng losing around 2 per cent, and China’s Shanghai Composite declining by over 1 per cent.
In the commodities market, gold prices strengthened as investors sought safe-haven assets amid geopolitical uncertainty. On the Multi Commodity Exchange (MCX), August gold futures rose 0.27 per cent to ₹1,40,733 per 10 grams, while September silver futures fell 0.36 per cent to ₹2,15,233 per kilogram.
