The rupee appreciated 36 paise to 82.24 against the US dollar in early trade on Friday as fresh foreign fund inflows and positive trend in domestic equities boosted investor sentiment.
At the interbank foreign exchange, the domestic unit opened at 82.28 against the dollar, then recovered and recovered to 82.24, registering a rise of 36 paise over its previous close.
On Thursday, the rupee had closed at 82.60 against the American currency.
Meanwhile, the dollar index, which measures the dollar’s strength against six currencies, declined 0.13 per cent to 104.88.
Global oil benchmark Brent crude futures fell 0.39 per cent to USD 84.42 per barrel.
“The Indian rupee had its best week in more than a month, helped by renewed risk-off sentiment in global markets. Amit Pabari, Managing Director, CR Forex Advisors, said that the rupee seems to be consolidating in the NDF market, which shows that offshore players have taken long short USD positions.
Besides, inflow of over Rs 12,000 crore on the back of Adani’s block deal eased the task for the rupee’s gains.
“The local currency is expected to appreciate against the USD this month as dollar inflows from corporates are on the higher side at the end of the financial year in March. However, going forward, we expect a theme of accommodative Fed policy in the near term to limit gains in the local unit,” Pabri said.
In the domestic equity market, the 30-share BSE Sensex advanced 482.37 points, or 0.82 per cent, to 59,391.72. The broader NSE Nifty advanced 154.15 points, or 0.89 per cent, to 17,476.05.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth Rs 12,770.81 crore, according to exchange data.