Rupee Ends Nearly Flat at 95.20 Against Dollar Amid Global Oil Jitters

The Indian rupee ended Friday’s trading session on a largely unchanged note, closing 2 paise stronger at 95.20 against the US dollar, as investors balanced domestic resilience with rising geopolitical uncertainties and volatile global commodity prices.

The local currency opened at 95.27 per dollar in the interbank foreign exchange market and moved within a narrow 95.19-95.28 range before settling marginally higher than the previous close. On Thursday, the rupee had weakened by 14 paise, ending at 95.22 against the greenback.

According to forex market participants, investor sentiment remained cautious amid uncertainty surrounding negotiations involving Iran and Oman over the Strait of Hormuz, a strategically vital shipping route for global energy supplies. Concerns over the potential impact on crude oil flows have heightened risk aversion across financial markets.

Analysts said elevated geopolitical tensions, coupled with fluctuations in oil prices, continue to influence currency movements, particularly for oil-importing economies such as India. Although Brent crude eased slightly to around USD 82.30 per barrel, prices remained elevated enough to keep market participants on edge.

Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan, said the rupee is expected to trade with a slight negative bias as markets await further developments over the weekend. He noted that any positive breakthrough in the Strait of Hormuz discussions could support the domestic currency, while adverse developments may increase pressure.

Choudhary added that traders will also closely monitor the US non-farm payrolls report, a key indicator that could influence expectations around the Federal Reserve's monetary policy and shape global currency trends. He projected the USD-INR spot rate to remain within the 95.00-95.60 range in the near term.

Meanwhile, the dollar index, which measures the US currency against six major peers, slipped marginally to 99.90. Domestic equities also reflected cautious sentiment, with the Sensex falling 455.59 points and the Nifty declining 65.35 points. Foreign institutional investors remained net sellers, offloading equities worth Rs 17.86 crore, adding to subdued market mood.