𝗥𝘂𝗽𝗲𝗲 𝗥𝗲𝗯𝗼𝘂𝗻𝗱𝘀 𝗧𝗼 𝟵𝟰.𝟮𝟬 𝗔𝗴𝗮𝗶𝗻𝘀𝘁 𝗨𝗦 𝗗𝗼𝗹𝗹𝗮𝗿
The Indian rupee rose 20 paise in early trade on Friday. The currency reached 94.20 against the US dollar. This follows a record closing low in the previous session.
Key factors for the recovery include:
- Hopes for an India-US trade agreement.
- Increased foreign inflows.
- Lower crude oil prices.
India and the United States are discussing an interim trade pact. Foreign secretary Vikram Misri stated that trade was a major topic during talks between Prime Minister Narendra Modi and US President Donald Trump. US trade representative Jamieson Greer will visit India next week to continue negotiations.
Market data shows:
- Brent crude futures fell 0.85% to $79.17 per barrel.
- The dollar index rose 0.08% to 100.92.
- The Sensex fell 786.58 points to 76,624.90.
- The Nifty slipped 210.95 points to 23,959.80.
- Foreign institutional investors sold equities worth Rs 1,025.20 crore on Thursday.
Analysts suggest the Reserve Bank of India may use dollar inflows to rebuild forex reserves. The central bank has a forward dollar book of approximately USD 110 billion. Some market participants believe the RBI purchased USD 3 billion to 5 billion over the last two sessions.
Source: The Times of India