Currency Market News: Rupee strengthens for fourth day, rises 10 paise to 85.54 vs dollar

Rupee extended its upward momentum for the fourth consecutive session, appreciating by 10 paise to trade at 85.54 against the US dollar in early trade on Thursday. The gains were supported by renewed foreign fund inflows into domestic equities and a softer greenback globally.

The domestic currency opened at 85.48 at the interbank foreign exchange and later slipped slightly to 85.54, still marking a 10-paise gain from its previous close. On Wednesday, the rupee had strengthened by 16 paise to settle at 85.64 against the dollar. Over the last three sessions, the currency has appreciated by a total of 104 paise from the April 9 closing level of 86.68.

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Forex traders, however, noted that lackluster equity market sentiment and a modest rebound in crude oil prices are limiting the rupee’s upside.

Globally, the US dollar index—measuring the dollar’s strength against a basket of six major currencies—was trading 0.14 per cent higher at 99.28. Brent crude, the international benchmark for oil, climbed 0.96 per cent to USD 66.48 per barrel in futures trade.

Meanwhile, gold prices in the national capital surged by Rs 1,650 to an all-time high of Rs 98,100 per 10 grams. The spike is attributed to heightened demand for safe-haven assets amid rising tensions from a deepening trade war between the US and China.

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Stock market summary

Despite positive cues from broader Asian markets, Indian equities opened on a weaker note on Thursday. The Nifty50 began the session at 23,401.85, down 0.15%, while the BSE Sensex declined by over 76 points to open at 76,968.02.

However, broader markets showed relative resilience, with both smallcap and midcap indices recording only marginal losses. On the institutional front, foreign institutional investors (FIIs) continued their buying spree, purchasing equities worth Rs 3,936.42 crore on a net basis on Wednesday, as per exchange data.

(With inputs from PTI)