Rupee Edges Up 4 Paise in Early Trade Amid Weak Dollar

The Indian rupee snapped its three-day losing streak on Friday, opening 4 paise higher at 96.31 against the US dollar aided by a weaker greenback. The domestic currency had settled at 96.35 in the previous session. The recovery in the rupee came after the dollar index, which measures the US currency against a basket of six major peers, slipped to a one-month low. The dollar index steadied around 100.7 but remained on track for a weekly decline after softer-than-expected US inflation data eased expectations of an immediate Federal Reserve rate hike. While markets have largely ruled out a rate increase in July, expectations for September remain evenly split as investors weigh persistent inflation risks stemming from geopolitical tensions, analysts said. However, gains in the rupee remained capped as Brent crude hovered near $85 per barrel amid escalating hostilities between the US and Iran, keeping investors cautious. On the commodities front, the international benchmark Brent crude rose 1.48 per cent to $85.48 per barrel in early trade, while US West Texas Intermediate (WTI) crude gained 1.60 per cent to $80 per barrel. Asian equities traded lower, with Japan’s Nikkei falling more than 4 per cent, Hong Kong’s Hang Seng declining around 2 per cent, and China’s Shanghai Composite shedding over 1 per cent. (IANS)

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