Rupee check: Domestic currency jumps 16 paise to close at 96.72 against the US dollar

The rupee appreciated 16 paise to close at 96.72 (provisional) against the US dollar on Friday, October 9, in line with its broader Asian peers, supported by a slight softening in the US dollar and crude oil prices.

As per a PTI report, forex traders said the greenback weakened, and crude oil prices eased following remarks by US President Donald Trump that the US would refrain from military action against Iran ahead of the November midterm elections.

Moreover, likely intervention from the central bank offered a crucial cushion to the domestic unit.

At the interbank foreign exchange market, the rupee opened at 96.74 against the US dollar. In intraday trade, the rupee touched a high of 96.51 and a low of 96.77 against the greenback.

At the end of the trading session on Friday, the rupee closed at 96.72 (provisional), marking a 16 paise increase over its previous close.

On Thursday, the rupee depreciated by 13 paise to close at 96.88 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 102.09, lower by 0.04%.

Brent crude, the global oil benchmark, was trading lower by 1.28% at $102.95 per barrel in futures trade.

On October 9, the SENSEX advanced by 879.09 points or 1.23% to close at 72,472.33, while the NIFTY50 ended higher by 288.65 points or 1.30% at 22,520.45.

On Friday, the foreign institutional investors (FIIs) sold shares worth ₹3,568.90 crore, while the domestic institutional investors (DIIs) purchased equities worth ₹4,743.26 crore on a net basis, according to exchange data.

India’s forex reserves drop

India's forex reserves dropped by $12.952 billion to $734.606 billion during the week ended October 2, according to the RBI data released on Friday.

The overall reserves had dropped by $18.343 billion to $747.557 billion in the previous reporting week ended September 25.

The reserves had touched an all-time high of $785.706 billion for the week ended September 4 on the back of a heavy flow of currency as part of a special concessional swap for deposits from the diaspora through which banks raised a record sum of nearly $133 billion.

For the week ended October 2, foreign currency assets, a major component of reserves, decreased by $10.664 billion to $604.747 billion, the data showed.

Expressed in dollar terms, the foreign currency assets include effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in foreign exchange reserves.

The value of gold reserves decreased by $2.288 billion to $106.413 billion during the week. The Special Drawing Rights (SDRs) were up by $15 million to $18.656 billion.

India's reserve position with the IMF decreased by $15 million to $4.789 billion.