INR rebounds well in opening trades; Sustained dollar weakness supports

The Indian rupee rebounded well in opening trades on Thursday, as dollar index stayed well below 97 mark. US Dollar Index holds losses below 97.00 despite stronger-than-expected NFP report. INR opened at Rs 90.55 per dollar and hit a high of 90.40 so far during the day. Yesterday, rupee depreciated 14 paise to close at 90.70 against the US dollar, on dollar demand from importers and geopolitical tensions. Local shares also ended on a muted note tracking mixed cues from global markets and amid profit taking after three days of gains on optimism surrounding an interim trade agreement with the United States. Higher oil prices also kept investors on edge ahead of a meeting between Israeli Prime Minister Benjamin Netanyahu and U.S. President Donald Trump that would halt Iran's uranium enrichment. The benchmark BSE Sensex slipped 40.28 points to end at 84,233.64, while the broader NSE Nifty index closed up 18.70 points at 25,953.85. However, FPI inflows may support the local unit at lower levels. Foreign institutional investors net bought shares to the extent of Rs 944 crore on Wednesday while domestic institutional investors offloaded shares worth Rs 125 crore, according to provisional exchange data.

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