INR Pared Initial Loses To Settle Higher; Late-Day Buying In Equities Support

The Indian rupee managed to pare sharp losses made earlier in the day and settle 4 paise higher at 83.48 against the US dollar on Friday, tracking a strong rebound in domestic equities. The domestic currency fell in early trade on risk aversion in global markets amid geopolitical tensions in the Middle East. Markets opened deep in the red as U.S. rate worries and signs of escalating tensions in the Middle East, following Israel's retaliatory strikes against Iran, drove investors towards safe-haven assets. However, the rupee recovered thereafter as Indian shares rose sharply to snap a four-day losing streak on late-day buying spree. The benchmark S&P BSE Sensex ended the session up 599.34 points, or 0.83 percent, at 73,088.33 after having hit a low of 71,816.46 earlier. The broader NSE Nifty index hit an intraday low of 21,777.65 before reversing course to end up 151.15 points, or 0.69 percent, at 22,147. Meanwhile, the dollar index pulled back mildly below 106 mark, supporting gains in the domestic unit.

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