The rupee extended its gains for the second consecutive session on Friday and closed 7 paise higher at 94.33 against the US dollar on optimism over India-US trade talks, although a stronger dollar and lingering geopolitical uncertainties limited the gains.According to PTI, the local currency opened at 94.30 against the greenback and traded in the range of 94.20-94.52 during the session before closing at 94.33.On Thursday, the rupee had closed at 94.40 against the US dollar with a rise of 10 paise.Forex traders said the domestic currency was supported by hopes that talks on an interim trade deal between India and the US may gain momentum in the coming days.Indian Foreign Secretary Vikram Misri on Thursday said trade figured prominently in discussions between Prime Minister Narendra Modi and US President Donald Trump, with both sides asking negotiators to accelerate efforts to conclude a proposed trade deal.However, gains remained limited as investors continued to monitor developments related to the proposed US-Iran peace process.Market sentiment turned cautious after reports that US Vice President JD Vance has postponed his planned visit to Switzerland for talks with Iranian negotiators with the White House citing logistical reasons.“Rupee remains the leading performer among Asian peers, buoyed by resurgence in capital inflows and fall in oil prices. With risk-on sentiment back in the driver’s seat, we expect the local rupee to move towards 94 due to dollar inflows. Technically, USDINR spots key resistance at 94.90 and strong support at 94.10,” HDFC Securities Research Analyst Dilip Parmar was quoted as saying by PTI. “Boxed between.”Anil Kumar Bhansali, head of treasury and executive director, Finrex Treasury Advisors LLP, said the currency has recovered from intraday weakness and may remain range-bound next week.“After falling as low as 94.52 during the day, the rupee closed slightly firmer at 94.32. The range for Monday is expected to be between 94 and 95 while we await further developments on the US-Iran front during the weekend,” Bhansali said.Meanwhile, the dollar index, which measures the greenback against six major currencies, was trading 0.08% lower at 100.76.Global oil benchmark Brent crude fell 0.65% to US$79.33 a barrel in futures trade.On the domestic equity front, benchmark indices closed sharply lower, with Sensex falling 607.08 points at 76,802.90 and Nifty falling 154.90 points at 24,013.10.Foreign institutional investors (FIIs) became net buyers during the session, as they bought equities worth Rs 4,859.07 crore, according to exchange data.Misri’s comments came a day after Modi and Trump held wide-ranging talks on the sidelines of the G7 summit, their first such conversation in 16 months.The Foreign Secretary said significant progress has been made on the proposed interim trade agreement and said US Trade Representative Jameson Greer is scheduled to visit India next week to take the talks forward.
