Image for representation | Photo Credit: C. Venkatachalapathi
The rupee opened on a positive note and appreciated by 15 paise to 81.15 against the US dollar in early trade on Friday.
Forex traders said the rupee opened strong tracking gains in the non-deliverable forward (NDF) markets.
At the interbank foreign exchange, the domestic unit opened at 81.24 against the dollar, then advanced further to trade at 81.15, registering a rise of 21 paise over its previous close.
It had closed at 81.36 against the dollar on Thursday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.09% to 102.15.
Global oil benchmark Brent crude futures rose 0.65% to $86.72 a barrel.
According to Sriram Iyer, Senior Research Analyst, Reliance Securities, the rupee strengthened on Friday tracking strength in NDF markets. NDF closed at 81.1650 on Thursday.
“However, firmer crude prices, risk-off sentiments amid rising global growth concerns and weak opening for Asian and emerging market peers may cap gains this Friday,” Iyer added.
Iyer said that supported by dollar inflows and weak dollar index, the currency may witness marginal gains during the week.
In the domestic equity market, the 30-share BSE Sensex was trading at 60,764.26, down 94.17 points or 0.15%. The broader NSE Nifty fell 25.15 points, or 0.14%, to 18,082.70.
Foreign institutional investors (FIIs) were net buyers in the capital market on Thursday as they bought shares worth ₹399.98 crore, according to exchange data.