The Indian rupee is poised to open stronger against the US dollar on Friday, targeting a range of 95.50 to 95.55 per dollar.
This marks a notable recovery from Thursday’s settlement of 95.68, driven by a confluence of favorable external factors including a sharp decline in the greenback and easing energy costs.
The dollar’s slide, its most significant in three months, has provided broad-based support for emerging market currencies.
Simultaneously, global oil prices have retreated, slipping below levels seen prior to the escalation of tensions with Iran.
For India, the world’s largest crude importer, lower benchmark prices directly reduce the import bill and alleviate pressure on the current account, creating a natural bid for the local currency.
Market sentiment is further underpinned by active support from the Reserve Bank of India (RBI).