The rupee rose 15 paise to 95.32 against US dollar in early trade on Friday as the greenback weakened and oil prices eased despite intensifying tensions in West Asia.
FII outflows and uncertainties over <a href="https://www.mid-day.com/news/world-news/article/us-iran-war-us-strikes-over-80-iran-linked-sites-as-trump-declares-ceasefire-dead-23638901" target="_blank" rel="none noopener">fresh tensions in West Asia </a>weighed on the local unit while a strong start to the day's trade at the domestic equity markets provided support, according to forex traders.
The <a href="https://www.mid-day.com/news/world-news/article/us-launches-fresh-airstrikes-on-iran-as-tehran-targets-gulf-states-23638960" target="_blank" rel="none noopener">US launched new airstrikes against Iran</a> on early Thursday, and Tehran responded by targeting US-allied West Asian countries in an exchange of fire that threatened an interim deal intended to help end the war.
Back-and-forth attacks, including a day earlier, have repeatedly threatened the ceasefire. But Thursday's appeared bigger all around, with sirens sounding at least three times in Bahrain, home to the US Navy's 5th Fleet headquarters, and missiles targeting Kuwait and Qatar.
At the interbank foreign exchange market, the rupee opened at 95.27 against the greenback before slipping to 95.32, up 15 paise from its previous close.
The rupee appreciated by just 1 paisa to settle at 95.47 against the US dollar on Thursday.
"Traders reported dollar selling by state-run banks, widely viewed as acting on behalf of the <a href="https://www.mid-day.com/business/business-news/article/rbi-monetary-policy-meeting-growth-outlook-at-6-6-per-cent-rbi-governor-warns-of-supply-chain-disruptions-23633764" target="_blank" rel="none noopener">Reserve Bank of India (RBI)</a>. The intervention helped the rupee break through the 95.50-level and maintain gains through the session on Thursday. Exporters may sell dollars on all upticks while importers keep buying the dips on Friday," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.64, down 0.25 per cent.
Brent crude, the global oil benchmark, was trading lower by 0.35 per cent at USD 77.75 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 694.83 points to 77,423.82 in early trade on Friday while Nifty surged 195.95 points to 24,154.85.
Foreign institutional investors offloaded equities worth Rs 532.86 crore on a net basis on Thursday, according to exchange data.
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The rupee rose 15 paise to 95.32 against US dollar in early trade on Friday as the greenback weakened and oil prices eased despite tensions in West Asia

Rupee opens 15 paise higher at 95.32 against US dollar amid West Asia tensions

Stock market gets IT boost: Sensex soars nearly 700 points, Nifty jumps 200 points 

At the interbank foreign exchange market, the rupee opened at 95.27 against the greenback before slipping to 95.32, up 15 paise from its previous close

Rupee continues to rise, gains 15 paise against US dollar at opening

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