Indian rupee strengthened against the U.S. dollar on Friday amid hopes of potential weekend negotiations between the United States and Iran, and cease fire between Israel and Lebanon. Some support also came after reports indicated that the Reserve Bank of India has asked PSU oil refiners to reduce spot dollar purchases and use credit line for foreign exchange. Besides, renewed foreign capital inflows have also supported the rupee. Foreign institutional investors were the net buyers on Thursday’s session with net buying of securities worth Rs 382.36 crore. Meanwhile, S&P Global Ratings has stated that India is likely to grow at 6.3% even if oil prices average $130 per barrel in the current fiscal year (FY27). Citing the country’s long-term political commitment to fiscal consolidation, it noted that the fiscal strain caused by higher energy prices is unlikely to affect India’s sovereign credit rating. On the global front, the Japanese yen has weakened against the dollar on Friday, to trade over 159 per dollar, after Bank of Japan Governor Kazuo Ueda offered no clear guidance on interest rates ahead of the central bank’s upcoming policy meeting.

Finally, the rupee ended at 92.91 (Provisional), strengthened by 23 paise from its previous close of 93.14 on Thursday. The currency touched a high and low of 92.98 and 92.65 respectively.