The rupee jumped 51 paise to 86.17 against the US dollar in early trade on Friday (April 11). A weak dollar, falling crude prices, and strong domestic equities supported the rally.
Markets were closed on Thursday for Mahavir Jayanti.
Key factors driving the rupee rally
Dollar index slumps below 100
The dollar index fell to 100.22, its lowest since September. It had dropped 1.94% on Thursday — the biggest one-day fall in over two years.
Investors dumped US assets amid renewed trade tensions with China and weak confidence in the US economy.
Trump tariffs trigger risk-off on US assets
President Trump raised tariffs on Chinese imports to an effective 145%.
Markets fear higher inflation and recession in the US.
ING Bank said the dollar is nearing a “confidence crisis.”
Brent crude softens
Oil prices cooled, easing pressure on India’s import bill.
Brent crude was down 0.6% at $63 per barrel.
Strong start in equities
The Sensex surged 1,204 points to 75,051.
The Nifty gained 385 points to 22,784.
Positive sentiment in stocks gave further support to the rupee.
Forward market expectations
The 1-month non-deliverable forward indicated a range of 86.18–86.20.