The Indian rupee strengthened for the second consecutive session on Friday, rising 7 paise to close at 94.33 against the US dollar. The local currency opened on a positive note amid growing optimism over ongoing India-US trade negotiations and continued support from foreign capital inflows.
During the day, the rupee traded in a range of 94.20 to 94.52 before settling at 94.33, compared to its previous close of 94.40. Market participants said hopes of an early India-US trade agreement boosted sentiment after discussions between Prime Minister Narendra Modi and US President Donald Trump on the sidelines of the G7 Summit.
However, gains were partially capped by a stronger US dollar and uncertainty surrounding the US-Iran peace process. Rising crude oil prices also weighed on investor confidence, limiting the rupee's upward movement.
Forex analysts noted that the rupee remains one of the better-performing Asian currencies, supported by capital inflows and easing concerns over oil prices. Foreign Institutional Investors (FIIs) were net buyers in the Indian equity market, purchasing shares worth over ₹4,800 crore, which further supported the domestic currency.
Meanwhile, the domestic stock market ended lower, with the Sensex falling 607 points and the Nifty slipping 155 points. Traders will now closely watch developments in India-US trade talks, crude oil prices, and global geopolitical events for further direction in the currency market.
