Mumbai, Jun 20 (PTI) The rupee snapped its three-day losing streak and settled with a gain of 18 paise at 86.55 against the US dollar on Friday, buoyed by a massive inflow of foreign capital, retreating crude oil prices and a weakening greenback.
A robust sentiment in domestic equity markets further supported the local unit, according to forex traders.
At the interbank foreign exchange, the domestic currency opened at 86.65 and traded in a narrow range of 86.55-86.67, before ending the session at its intra-day peak of 86.55 against the US dollar, registering a gain of 18 paise from previous closing level.
The rupee had lost 30 paise to close at an over two-month low of 86.73 against the dollar on Thursday, logging a combined loss of 69 paise in the past three sessions.
According to Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers, the rupee gained on Friday but declined a little over 1 per cent this month so far, “with a large portion of its decline occurring after Israel attacked targets in Iran last Friday”.
Dilip Parmar, Research Analyst, HDFC Securities, attributed the rupee’s resurgence to “a revitalisation in the domestic stock markets and a subdued greenback, which receded following reports of President Donald Trump postponing a decision regarding an Iran strike”.
Additionally, Parmar said, lower imported commodity prices lent additional buoyancy to the local rupee.
“In the near-term, the spot USD/INR pair faces resistance at 87.10 and finds support at 86.45. The overall bias for the USD/INR pair remains favourable,” he added.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.30 per cent lower at 98.60.
In the domestic equity market, the 30-share BSE Sensex surged 1,046.30 points to settle at 82,408.17, while Nifty soared 319.15 points to 25,112.40.
Brent crude, the global oil benchmark, declined 2.36 per cent to USD 76.99 per barrel in futures trade.
Foreign institutional investors (FIIs) purchased equities worth Rs 7,940.70 crore on a net basis on Friday, according to exchange data.
The latest weekly data released by the Reserve Bank of India on Friday showed India’s forex reserves rose USD 2.294 billion to USD 698.95 billion during the week ended June 13.
However, government data showed the country’s eight core sectors’ growth slowed down to 0.7 per cent, lowest in nine months, in May 2025 against 6.9 per cent in the same month last year. In April, the growth in output of these key infrastructure sectors were recorded at 1 per cent. PTI TRB HVA
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