The rupee opened at ₹96.22 per dollar, up 10 paise from Thursday's ₹96.32, re‑establishing the psychological ₹96 barrier after a recent slide.
Oil prices eased, with West Asia exports rising and G7 stock releases adding supply. The softer commodity base has eased pressure on the currency, even as the dollar remains buoyant on higher Treasury yields.
Fed rate‑hike odds fell to 20% after the Labor Department released a weaker‑than‑expected jobs report. Morgan Stanley noted that investors remain cautious, citing persistent inflation risk that could keep US yields elevated.
RBI has maintained a steady presence on the FX market, with a currency trader at a private bank noting that the rupee's stronger opening may reflect expectations of intervention. Yet, with the ₹96 level decisively breached, the likelihood of further depreciation has grown.
Analysts expect the rupee to hold above ₹96 for the next session, but any uptick in crude or a rebound in US Treasury yields could reverse the trend. Traders will watch the upcoming US CPI release for clearer inflation signals.