The rupee jumped 28 paise to 92.86 against the US dollar in early trade on Friday amid hopes of easing geopolitical tensions and positive sentiment in domestic equity markets. Buying of Indian equities by foreign investors also supported the local currency, although it remained under pressure due to a firm dollar, forex traders said.
At the interbank foreign exchange market, the rupee opened at 92.93 and further strengthened to 92.86 against the greenback in early deals, up 28 paise from the previous closing level. On Thursday, the rupee had strengthened 19 paise to settle at 93.14 against the US dollar.
Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.05 per cent to 98.07. Brent crude, the global oil benchmark, was down 1.16 per cent at USD 98.24 per barrel in futures trade.
Analysts said crude oil prices fell below USD 100 per barrel amid expectations that the crisis in West Asia could soon come to an end. On the geopolitical front, China, a close ally of Iran and the largest importer of Iranian oil, has asked Tehran to ensure freedom and safe passage through the Strait of Hormuz, a key international trade route.
Separately, Israel and Lebanon have agreed to a 10-day ceasefire, which could further boost peace efforts aimed at ending the ongoing conflict involving the US, Israel, and Iran.
On the domestic equity market front, the 30-share Sensex gained 176.08 points, or 0.23 per cent, to 78,164.76 in early trade, while the Nifty rose 33.90 points, or 0.14 per cent, to 24,232.60.
Foreign Institutional Investors (FIIs) turned net buyers on Thursday, purchasing equities worth ₹382.36 crore, according to exchange data.
(With inputs from IANS)
