The Indian rupee moved marginally higher by 2 paise to trade at 95.43 against the US dollar in early deals on Friday, supported by a slight pullback in the American currency overseas.
Despite the early uptick, forex traders noted that broader gains remain capped by continuous foreign capital outflows from domestic equities and elevated international crude oil prices linked to West Asian geopolitical tensions.
Key Currency & Market Indicators
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Interbank Foreign Exchange: The rupee opened stronger at 95.39 before paring some gains to trade at 95.43, up 2 paise from Thursday’s close of 95.45.
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Dollar Index (DXY): Eased 0.08% to 99.78 against a basket of six major currencies, weighed down by falling US Treasury yields and softer-than-expected US inflation data.
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Brent Crude Oil: Rose 0.16% to $87.21 per barrel in futures trade as hopes for a diplomatic breakthrough in the West Asia crisis remained stalled.
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Domestic Equities: The BSE Sensex fell 315.50 points (-0.40%) to 77,764.46, while the NSE Nifty dropped 72.70 points (-0.30%) to 24,321.95 in morning deals.
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FII Activity: Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹510.69 crore on Thursday, according to exchange data.
Market Drivers at a Glance
| Factor | Trend | Impact on Rupee |
| US Dollar Index | Softening (99.78) | Positive (Offers mild support) |
| US Treasury Yields | Falling | Positive (Relieves dollar pressure) |
| Brent Crude Oil | Firming ($87.21/bbl) | Negative (Raises import costs) |
| FII Equity Flows | Net Outflows (₹510.69 Cr) | Negative (Weighs on domestic liquidity) |
