Indian Rupee Opens 4 Paise Higher Against US Dollar

The Indian rupee snapped its three-day losing streak on Friday, opening 4 paise higher at 96.31 against the US dollar, supported by a weaker greenback.

The domestic currency had closed at 96.35 in the previous trading session.

The rupee gained after the US dollar index, which tracks the American currency against a basket of six major currencies, slipped to a one-month low.

Although the index steadied around 100.7, it remained on course for a weekly decline after softer-than-expected US inflation data reduced expectations of an immediate interest rate hike by the US Federal Reserve.

Analysts said markets have largely ruled out a rate increase in July, while expectations for September remain evenly balanced as investors continue to assess inflation risks linked to geopolitical tensions.

Rising crude oil prices limited the rupee’s gains. Brent crude hovered near $85 per barrel amid escalating tensions between the United States and Iran, keeping investors cautious.

In the commodities market, Brent crude rose 1.48 per cent to $85.48 per barrel, while US West Texas Intermediate (WTI) crude gained 1.60 per cent to $80 per barrel in early trade.

Asian markets traded lower, with Japan’s Nikkei falling more than 4 per cent, Hong Kong’s Hang Seng declining around 2 per cent and China’s Shanghai Composite losing over 1 per cent.

Domestic gold prices edged higher as geopolitical tensions increased demand for safe-haven assets, while silver prices declined.

On the Multi Commodity Exchange (MCX), gold futures for August delivery rose 0.27 per cent to an intraday high of ₹1,40,733 per 10 grams. In contrast, silver futures for September delivery fell 0.36 per cent to an intraday low of ₹2,15,233 per kg.

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