Rupee appreciated by 23 paise to reach 85.49 against the US dollar in early trade on Friday, supported by strong foreign institutional investor (FII) inflows and buoyant domestic equity market sentiment.

However, the local currency's upward movement was limited due to a rise in global crude oil prices and a slightly stronger dollar, forex traders noted.At the interbank foreign exchange market, the rupee opened at 85.50 and later edged up to 85.49, marking a 19 paise gain from its previous close. The rupee had risen 36 paise to close at 85.72 against the greenback on Thursday.

"The rupee is expected to be within a range of 85.35-85.95 as inflows dominated outflows yesterday (Thursday), taking the Indian currency up. We expect the same today (on Friday), though there could be outflows from oil, RBI buying, and FPI buying dollars," said Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, as quoted by PTI.

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The dollar index—which tracks the greenback against six major currencies—was trading 0.10 per cent higher at 97.24. Meanwhile, Brent crude futures climbed 0.47 per cent to $68.05 per barrel after a decline in the previous session.

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Equity market update

Indian stock markets extended their gains for the fourth consecutive session on Friday (June 27, 2025), kicking off the July F&O series on a strong note. At the opening bell, the Nifty50 rose by 24 points (0.09 per cent) to 25,573.2, while the BSE Sensex edged up 16.13 points (0.02 per cent) to 83,772.

Bank Nifty, ahead of the Reserve Bank of India’s VRRO auction, faced some profit booking and was down by nearly 75 points in early trade.

Broader markets outperformed frontline indices, with both midcap and smallcap stocks showing notable gains.

A sustained weakness in the dollar index around 97 acted as a key trigger for the massive FII inflow of Rs 12,954 crore on Thursday. Heavy institutional buying lifted blue-chip counters such as HDFC Bank, ICICI Bank, Bharti Airtel, Reliance Industries, and Bajaj Finance, significantly contributing to the recent uptrend in benchmark indices.