Early Friday trading saw the rupee jump 51 paise versus the US dollar to 86.17 amid a fall in oil prices, a weakening greenback, and a robust start to domestic share markets. The local unit increased one day after US President Donald Trump halted the further 26% tariffs on India until July 9.
The local unit opened at 86.22 versus the US dollar at the interbank foreign exchange, up 46 paise from the previous close, and then continued to rise to 86.17. Against the US dollar, the rupee finished Wednesday at 86.68.
The dollar index, which compares the value of the US dollar to a basket of six other currencies, was down 0.81 percent at 100.04. The benchmark for world oil, Brent crude, dropped 0.27 percent to USD 63.16 per barrel in futures trading.
The rupee is anticipated to surge over 86 as the dollar index declines below its September low of 100.20, with a further decline to 95 levels anticipated. Any upswing resulting from risk aversion should be used for additional covers. A strong rise has enabled exporters to cover their export holdings.
