MUMBAI — The Indian rupee strengthened by 25 paise to 92.95 against the U.S. dollar in early trading Friday, supported by easing demand for dollars after a reported intervention by the Reserve Bank of India.
The currency opened higher after closing at 93.20 in the previous session, aided by improved sentiment in domestic equity markets and expectations of easing geopolitical tensions.
Market participants said the RBI has asked state-run oil refiners to use a special credit line instead of purchasing dollars from the market, helping reduce pressure on the rupee.
However, gains were partly limited by a strong U.S. dollar in global markets.
In commodities, gold and silver prices traded in a volatile range. Gold futures for June were up Rs 98, or 0.06 percent, at Rs 1,53,250, after touching an intraday high of Rs 1,53,301 and a low of Rs 1,53,010.
Silver futures for May rose 0.83 percent, or Rs 2,088, to hit an intraday high of Rs 2,50,716, with a low of Rs 2,49,300 during the session.
Analysts said the outlook for precious metals remains cautiously positive, supported by macroeconomic factors, though stronger momentum would require a clear break above key resistance levels.
For silver, they noted that while the broader tone remains supportive, a sustained uptrend will depend on confirmation of price momentum.
Meanwhile, global oil prices declined, with Brent crude trading at $97.99 per barrel, down more than 1 percent, and U.S. West Texas Intermediate crude falling nearly 2 percent to an intraday low of $92.91.
Investor sentiment improved following reports of a ceasefire between Israel and Lebanon, along with expectations of progress in upcoming U.S.-Iran talks.
Domestic equity markets opened on a flat-to-positive note, providing additional support to the rupee in early trade. (Source: IANS)
