The Indian rupee strengthened 19 paise to close at 95.80 (provisional) against the US dollar on Friday, September 25, according to forex market data.
The domestic currency remained above the 96-mark as improved global risk sentiment supported the rupee. Possible intervention by the Reserve Bank of India also helped limit pressure on the currency during the session.
However, the rupee’s gains remained restricted by continued demand for the US dollar from domestic importers. Elevated crude oil prices also weighed on sentiment, given India’s exposure to imported energy.
Forex traders said the dollar remained firm amid expectations of a relatively hawkish stance from the US Federal Reserve. A stronger US currency generally puts pressure on emerging-market currencies, including the rupee.
Despite these headwinds, the rupee managed to end the session higher than its previous close, extending support from broader market conditions.
Currency traders will continue to track movements in crude oil prices, global risk sentiment, dollar demand from importers and signals from the Federal Reserve, along with any action from the RBI.
The rupee’s next moves are likely to remain sensitive to both global dollar trends and domestic demand for foreign currency.
