Forex traders said renewed foreign fund inflows and lower crude oil prices further boosted investor sentiment and limited the downside.
At the interbank forex market, the rupee opened below 88 at 87.91 against the dollar and touched an intraday high of 87.75. The domestic unit finally settled at 88.03 (provisional), registering a decline of 7 paise from the previous close.
On Thursday, the rupee appreciated 12 paise to close at 87.96 against the US dollar, posting gains for the second straight session.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.11 percent lower at 98.22.
Brent crude, the global oil benchmark, was 1.10 percent lower at USD 60.39 per barrel in futures trading. In the domestic equity market, Sensex rose 484.53 points to 83,952.19, while the Nifty rose 124.55 points to 25,709.85. Foreign institutional investors (FIIs) bought shares worth Rs 997.29 crore on Thursday, according to stock market data.
India said on Thursday it is “broad-based and diversifying” its energy sources to meet market conditions, hours after US President Donald Trump claimed Prime Minister Narendra Modi assured him that New Delhi will stop purchasing Russian crude.
India’s continued purchase of petroleum products from Russia despite Western sanctions has become a major issue leading to a serious deterioration in relations between New Delhi and Washington.
Responding to questions about Trump’s comments that Modi had given him assurances on Wednesday, Foreign Ministry spokesperson Randhir Jaiswal said he was not aware of any such phone call. He added that India’s oil purchases have been guided to safeguard the interests of Indian consumers in a ‘volatile’ energy scenario.
“Ensuring stable energy prices and secure supply have been the twin objectives of our energy policy. This includes basing our energy sources broadly and diversifying where necessary to meet market conditions,” Jaiswal added.
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