Rupee strengthens in early trade amid easing geopolitical concerns

The Indian rupee appreciated in early trading on Friday, supported by improving global sentiment and renewed foreign investment in domestic equities.

The currency rose by 28 paise to 92.86 against the US dollar in the interbank foreign exchange market. It opened at 92.93 and extended gains shortly after, building on Thursday’s close of 93.14, when it had already strengthened by 19 paise.

Forex traders attributed the rupee’s upward movement to hopes of easing geopolitical tensions and positive momentum in Indian stock markets. Continued buying by foreign institutional investors also provided support, although a relatively strong US dollar capped further gains.

The dollar index, which tracks the greenback against a basket of six major currencies, edged up 0.05 per cent to 98.07, reflecting underlying strength in the US currency.

Meanwhile, global crude oil prices declined, offering additional relief to the rupee. Brent crude futures slipped 1.16 per cent to USD 98.24 per barrel, falling below the USD 100 mark amid expectations that tensions in West Asia could subside.

Recent geopolitical developments have fuelled optimism. China has urged Iran to ensure safe navigation through the Strait of Hormuz, a critical global shipping route, while Israel and Lebanon have reportedly agreed to a 10-day ceasefire. These moves are seen as steps towards de-escalation in a region affected by prolonged conflict involving multiple global powers.

On the domestic front, equity markets opened higher, further boosting investor confidence. The BSE Sensex rose 176.08 points, or 0.23 per cent, to 78,164.76 in early trade, while the NSE Nifty advanced 33.90 points, or 0.14 per cent, to 24,232.60.

Foreign institutional investors were net buyers in the previous session, purchasing equities worth Rs 382.36 crore, according to exchange data.

With IANS inputs