Rupee Gains 3 Paise Against Dollar Ahead of US Payrolls Data

The Indian rupee registered a mild appreciation against the US dollar on Friday, closing at 95.19 (Provisional). This marks a 3-paise strengthening from its previous close of 95.22 recorded on Thursday.

The currency’s movement came ahead of the anticipated release of US non-farm payrolls data, a key indicator expected to influence the Federal Reserve’s interest-rate decision next month.

Key Rupee Performance & Market Drivers

• Closing Rate: 95.19 (Provisional)
• Gain: 3 paise from Thursday’s close of 95.22
• Intraday High: 95.28
• Intraday Low: 95.16

Despite the rupee’s mild strength, market sentiment remained cautious due to several influencing factors. Brent crude oil prices continued to trade near the $82 barrel mark, contributing to market uncertainties.

Geopolitical tensions in West Asia, specifically after Iran fired a missile at Israel, also added to investor concerns regarding stability and supply chains. Furthermore, sustained foreign capital outflows by foreign institutional investors (FIIs) exerted pressure on the Indian currency.

Foreign Investment & Global Context

FIIs were net sellers during Thursday’s trading session, offloading securities valued at Rs 17.86 crore. This consistent outflow highlights ongoing risk aversion among foreign investors.

Globally, the British pound experienced mild weakness against the US dollar on Friday. This was attributed to uncertainty surrounding a potential agreement between the United States and Iran to facilitate the reopening of the Strait of Hormuz, a critical shipping lane.