Mumbai, Jun 12 (PTI) The rupee surged 67 paise to close at 95.18 against the greenback on Friday as global oil prices fell sharply after US President Donald Trump indicated an imminent deal with Iran.
A firm trend in domestic equity markets and a weaker American currency also supported the rupee, forex traders said.
Trump has said a deal to end the war with Iran is nearly complete and is expected to be signed over the weekend in Europe, as he called off military strikes on the Islamic Republic hours after threatening to take control of its oil industry.
Following Trump’s remarks, international crude oil prices fell with Brent crude — the global oil benchmark — trading lower by 4.25 per cent at USD 86.54 per barrel in futures trade.
At the interbank foreign exchange, the rupee opened at 95.40 and traded in the range of 94.95-95.53 before settling at 95.18, up 67 paise from its previous close.
The rupee had plunged 60 paise to settle at 95.85 against the US dollar on Thursday.
“Indian Rupee jumped sharply by nearly a per cent on a rise in risk appetite in global markets and a sharp fall in crude oil prices after Iran reportedly confirmed the US-Iran peace deal. This raised expectations of an end to the US-Iran war. This also led to a sharp fall in US Treasury yields across various tenures gained,” Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 99.65, down 0.20 per cent.
On the domestic equity market front, Sensex soared 1,695.40 points to settle at 75,527.95, and Nifty climbed 461.30 points to 23,622.90.
Foreign institutional investors offloaded equities worth Rs 1,082.18 crore on a net basis on Friday, according to exchange data. PTI TRB TRB BAL BAL
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.