Rupee Rises 10 Paise to 87.78 Against US Dollar Amid Trade Optimism and Softer Crude Prices

Mumbai, October 24: The Indian Rupee (INR/₹) appreciated slightly by 10 paise and closed at ₹87.78 (versus 1 USD) on Friday. There were two primary factors for the improvement: first, positive signals from the Indian and American governments surrounding the trade deal; and second, easing global crude prices.

Limited Upside Due to FII Outflows and Weak Equities

Even though the general sentiment was positive, overall appreciation was limited as foreign investors pulled out of the capital markets and domestic equities weakened. At the interbank foreign exchange market, the rupee opened at 87.78 per dollar and traded between 87.63 and 87.85 before settling at the day’s close of 87.78, higher by 10 paise from the previous session’s 87.88.

Dollar and Crude Oil Movement

The US dollar index, which measures the greenback’s strength against a basket of major currencies, inched up 0.10 percent to 99.03. Meanwhile, Brent crude futures declined by 0.11 percent to USD 65.92 per barrel, providing additional support to the rupee.

Domestic Market and FII Trends

On the equity front, the benchmark Sensex fell 344.52 points to close at 84,211.88, while the Nifty 50 slipped 96.25 points to 25,795.15. Foreign Institutional Investors continued to withdraw funds, selling equities worth Rs 1,165.94 crore on Thursday, according to exchange data.

Outlook

The slight improvement in the rupee’s price against the dollar can be attributed to the latest updates, including risk sentiment, the possibility of a trade deal between the US and India, and crude oil price trends. The long-term movement, however, will be determined by other factors, as markets await US inflation numbers and confirmation of the terms and conditions of the actual deal between the two countries.

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