Rupee ends higher for second day, settles at 94.33 as trade deal hopes offset oil concerns
The rupee extended its gains for a second straight session on Friday, closing 7 paise higher at 94.33 against the US dollar as optimism around India-US trade negotiations supported sentiment, though a stronger dollar and lingering geopolitical uncertainties capped gains.The local currency opened at 94.30 against the greenback and traded in a range of 94.20-94.52 during the session before settling at 94.33, according to PTI.On Thursday, the rupee had gained 10 paise to close at 94.40 against the US dollar.Forex traders said the domestic currency drew support from expectations that negotiations on an interim trade agreement between India and the US could gather pace in the coming days.Indian Foreign Secretary Vikram Misri on Thursday said trade featured prominently in discussions between Prime Minister Narendra Modi and US President Donald Trump, with both sides asking negotiators to expedite efforts to conclude the proposed trade pact.However, gains remained limited as investors continued to monitor developments surrounding the proposed US-Iran peace process.Market sentiment turned cautious after reports that US Vice President JD Vance postponed his planned visit to Switzerland for talks with Iranian negotiators, with the White House citing logistical reasons.“The rupee remains the lead performer among Asian peers, energised by a resurgence of capital inflows and cooling oil prices. With risk-on sentiment back in the driver’s seat, we expect the local rupee to march towards 94 on the back of dollar inflows. Technically, USDINR spot is boxed between a crucial resistance at 94.90 and firm support at 94.10,” said Dilip Parmar, Research Analyst, HDFC Securities, as quoted PTI.Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, said the currency recovered from intraday weakness and could remain range-bound next week.“The rupee closed a tad stronger at 94.32 after intra-day downside was till 94.52 levels. The range for Monday is expected between 94 and 95 while we await for further developments on the US-Iran front during the weekend,” Bhansali said.Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, was trading 0.08% lower at 100.76.Brent crude, the global oil benchmark, declined 0.65% to USD 79.33 per barrel in futures trade.On the domestic equity front, benchmark indices ended sharply lower, with the Sensex falling 607.08 points to close at 76,802.90 and the Nifty dropping 154.90 points to settle at 24,013.10.Foreign institutional investors (FIIs) turned net buyers during the session, purchasing equities worth Rs 4,859.07 crore, according to exchange data.Misri’s remarks came a day after Modi and Trump held wide-ranging discussions on the sidelines of the G7 Summit, their first such interaction in 16 months.The foreign secretary said significant progress had been made on the proposed interim trade agreement and noted that US Trade Representative Jamieson Greer is scheduled to visit India next week to advance the negotiations.
