Rupee gains 10 paise in early trade; volatility seen amid global conflict, RBI deadline

The rupee appreciated 10 paise to 92.41 against the US dollar in early trade on Friday, even as concerns over the ongoing US-Iran conflict continued to pose risks to the USD/INR pair. 

Forex traders said the domestic currency is likely to witness heightened intra-day volatility, with the deadline for the Reserve Bank of India (RBI)’s directive to banks to limit their overnight positions to $100 million ending on Friday. 

At the interbank foreign exchange market, the rupee opened at 92.58 against the greenback and strengthened to 92.41 in initial deals, marking a gain of 10 paise over its previous close of 92.51 on Thursday. The rupee had settled 3 paise higher in the previous session.

Safe-haven demand eased 

Meanwhile, the dollar index, which measures the US dollar’s strength against a basket of six currencies, edged up 0.07% to 98.69. Analysts noted that while safe-haven demand has eased following a fragile ceasefire, the dollar continues to attract buying interest at lower levels. 

Brent crude rose 0.51% 

In the commodities market, Brent crude, the global oil benchmark, rose 0.51% to $96.44 per barrel in futures trade, supported by persistent uncertainty surrounding the Strait of Hormuz and its impact on oil supplies. 

Domestic equity markets rebounded in early trade, with the BSE Sensex surging 630.08 points to 77,261.73 and the NSE Nifty climbing 203.6 points to 23,978.70. Broader markets also advanced, as the Nifty MidCap and Nifty SmallCap indices gained 1.29% and 1.25%, respectively. 

Among sectoral indices, Nifty Financial Services (ex-banks) led the gains, followed by Nifty PSU Bank and Nifty Media. However, Nifty IT emerged as the worst-performing sector. 

Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹1,711.19 crore on Thursday, according to exchange data.