The Indian rupee appreciated by 21 paise to 87.75 against the US dollar in early trade on Friday, October 17, supported by a weaker American currency and likely intervention by the Reserve Bank of India (RBI).
Forex traders noted that renewed foreign fund inflows and easing crude oil prices boosted investor sentiment. At the interbank foreign exchange market, the rupee opened at 87.91 and gained to an early high of 87.75, compared with its previous close of 87.96. This marks the currency’s third straight session of gains.
“After weeks of drifting in uncertain waters, the currency now seems to have found a favourable current — buoyed by a softer US dollar, returning investor confidence, and the Reserve Bank’s steady hand at the helm,” said Amit Pabari, Managing Director of CR Forex Advisors.
Pabari added that a break below 87.50 could open the way towards 86.80–87.00 levels, signaling potential further appreciation, while 88.30–88.40 remains a key resistance zone.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six major currencies, fell 0.16% to 98.17. Brent crude futures also eased 0.26% to $60.90 per barrel.
On the equity front, the Sensex dropped 261.58 points to 83,206.08 in early trade, while the Nifty fell 76.7 points to 25,508.60. Foreign Institutional Investors (FIIs) were net buyers, purchasing equities worth Rs 997.29 crore on Thursday, October 16, according to exchange data.
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