The rupee appreciated by 14 paise to close at 86.59 against the US dollar on Friday, helped by a fall in global crude oil prices, a weaker dollar overseas, strong domestic equities and sustained foreign fund inflows.At the interbank foreign exchange market, the rupee opened at 86.65 and moved in a narrow range of 86.55 to 86.67 before settling at 86.59 (provisional), marking a recovery from Thursday’s over two-month low close of 86.73. The rupee had declined 69 paise over the past three sessions, PTI reported.According to forex traders, the local currency was buoyed by softening oil prices after President Donald Trump signalled a two-week window for deciding on potential US involvement in the Israel-Iran conflict. “The local currency was comforted by a dip in oil prices after the White House said President Donald Trump will decide in the next two weeks whether the US will get involved in the Israel-Iran war,” said Maneesh Sharma, AVP – Commodities & Currencies, Anand Rathi Shares and Stock Brokers.Sharma added that while the rupee eased on the day, it had still posted a little over 1% decline for the month so far, with the bulk of the weakness triggered after Israel’s recent strikes on Iranian targets that pushed Brent crude to a five-month high.Traders are eyeing the HDB Financial IPO for possible foreign inflows. “Expectation that HDB Financial IPO is likely to witness significant inflows is seen as positive for the rupee,” Sharma said, adding that a broad 86.20-86.70 range may hold early next week.The dollar index was trading 0.30% lower at 98.60, while Brent crude fell 2.36% to $76.99 per barrel. Meanwhile, the 30-share BSE Sensex surged 1,046.30 points to 82,408.17, and the NSE Nifty gained 319.15 points to 25,112.40. Foreign institutional investors were net buyers to the tune of Rs 934.62 crore on Thursday, as per exchange data.
