Rupee Gains as Crude Prices Retreat, NSE IPO Lures Foreign Investors

The Indian rupee opened stronger on Friday at ₹95.71 against the US dollar, gaining 22 paise in early trade compared to Thursday's close of ₹95.93.

This move comes as a retreat in crude oil prices and expectations of foreign portfolio inflows linked to the $2.3-billion National Stock Exchange (NSE) IPO provide some support to the currency.

However, the rupee remains on track for a weekly decline due to importers' dollar demand and elevated oil prices continuing to pose risks.

The recent easing in crude oil prices is one of the key factors supporting the rupee. Brent crude was down 0.7% at $104.1 a barrel, extending losses into a third session.

A lower crude price is generally positive for the rupee as India imports a large share of its crude oil requirements, reducing the country's import bill and easing pressure on the current account and demand for dollars.