Mumbai, April 11 — The Indian rupee surged 51 paise to settle at 86.17 against the US dollar in early Friday trade, bolstered by a robust rally in domestic equities, easing crude oil prices, and a weaker dollar globally.
The sharp rise in the local currency followed a significant decision by US President Donald Trump, who suspended the additional 26% tariffs on Indian imports until July 9 — a move that cheered markets and lifted investor sentiment.
At the interbank foreign exchange market, the rupee opened at 86.22 per dollar, marking a gain of 46 paise from Wednesday’s closing of 86.68. It continued its upward momentum to reach 86.17 in early trading.
Markets had remained shut on Thursday due to Shri Mahavir Jayanti.
Analysts Expect Rupee to Trade Stronger Amid Global Dollar Weakness
Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, projected a bullish outlook for the rupee. "Rupee is expected to rise above 86 with the dollar index dipping below its September low of 100.20. We may see further correction towards the 95 level,” he noted.
He advised exporters to capitalize on the uptick, stating, “Any upside due to risk aversion should be utilised for further covers,” while forecasting an intraday trading range of 86.00–86.60.
Dollar Index Falls to Multi-Decade Lows
The dollar index, which measures the greenback against a basket of six major currencies, dropped 0.81% to 100.04. Bhansali attributed this decline to weakening investor confidence in the US economy, prompting a shift towards safer assets like the Swiss Franc, Japanese Yen, Euro, and gold.
Crude Oil and Equity Markets Support the Rally
Brent crude, the international oil benchmark, was down 0.27% at USD 63.16 per barrel in futures trading — a development favorable for oil-importing nations like India.
On the equity front, markets staged a remarkable rally. The 30-share BSE Sensex jumped 1,204.02 points (1.63%) to 75,051.17, while the broader NSE Nifty surged 385.25 points (1.72%) to 22,784.40.
Despite the upbeat momentum, foreign institutional investors (FIIs) were net sellers on Wednesday, offloading equities worth ₹4,358.02 crore, according to exchange data.
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