Rupee Rides Foreign Inflows to 94.46 Against Dollar in Early Trade
The Indian rupee started the day on a positive note, gaining 5 paise to reach 94.46 against the US dollar in early trade on Friday.
This gain was supported by foreign inflows and a rise in risk appetite, with strong RBI intervention also contributing to the upswing.
However, higher crude oil prices and potential US-Iran tensions could limit further gains for the rupee.
Despite this, the rupee has been on an upward trend, having appreciated 22 paise to close at 94.51 against the US dollar on Thursday.
Amit Pabari of CR Forex Advisors noted that while foreign currency deposits have given the rupee a boost, underlying fundamentals still carry risks, with support zones ranging from 94.00-94.20 and potential targets of 95.00, 95.50, and eventually 96.00 if there is a negative surprise.