Rupee Strengthens for Second Day, Ends at 95.73 Against US Dollar

New Delhi: The Indian rupee continued its upward momentum for the second straight trading session on Friday, gaining 63 paise to close provisionally at 95.73 against the US dollar.

The recovery in the domestic currency was supported by softer crude oil prices, positive sentiment in the stock market and expectations of intervention by the Reserve Bank of India to manage excessive volatility in the forex market.

The rupee opened at 96.30 per dollar in the interbank foreign exchange market and recorded strong gains during the session. It touched an intra-day high of 95.30 and a low of 95.68 before settling at 95.73.

This marks the second consecutive day of recovery after the rupee had bounced back by 50 paise on Thursday from its record closing low to end at 96.36 against the greenback.

According to market analysts, the rebound has been aided by the RBI’s recent USD/INR buy-sell swap announcement and easing geopolitical tensions, which have helped reduce pressure on imported commodity prices.

Investor confidence also improved after comments by Marco Rubio indicated that diplomatic efforts related to the Iran situation were moving in a positive direction. The remarks eased concerns over possible disruptions in global energy supplies, offering support to emerging-market currencies, including the rupee.

The Indian currency also benefited from falling US Treasury yields and gains in domestic equities.

Benchmark indices closed higher, with the BSE Sensex rising 231.99 points to end at 75,415.35, while the NIFTY 50 advanced 64.60 points to settle at 23,719.30.

Despite the recent recovery, analysts warned that geopolitical developments and global market uncertainty remain major risks for the rupee.

Experts expect the rupee to trade in the range of 95.00 to 95.90 against the dollar in the near term, with RBI intervention likely to continue playing a key role in stabilising the currency market.

With inputs from IANS