Reuters said the rupee was expected to open flat or marginally higher Friday after closing at 95.26 per U.S. dollar, as surging oil threatened support from lower U.S. yields and a softer dollar.
The U.S. Treasury's daily par-yield curve showed the two-year rate at 4.61% and the 10-year rate at 4.98% Thursday, down from 4.67% and 5.05% a day earlier. The Treasury says the rates are based on bid-side quotes collected near 3:30 p.m. ET. Reuters separately put the dollar index at 101.70 in its early Friday report and said Asian currencies were flat to modestly higher.
U.S. shares fell Thursday as investors weighed whether companies will earn enough to justify heavy spending on artificial intelligence, The Associated Press reported. The S&P 500 lost 0.3%, while the Nasdaq Composite dropped 1.4%.
Oil added a competing pressure. Reuters reported that Brent crude futures reached $117.84 a barrel during early Friday trading, a session high, amid supply concerns. Houthi military spokesman Yahya Saree claimed in a Thursday statement that the group had attacked Saudi sites. The Associated Press said it could not verify the claim, and that the Saudi government did not respond to its request for comment.
India's exposure to imported oil helps explain why higher prices matter for currency demand. The Ministry of Petroleum and Natural Gas told Parliament that crude oil import dependence was about 88% in each of fiscal years 2023-24, 2024-25 and 2025-26. That reliance suggests higher oil prices could increase demand for dollars as importers pay for crude.
The Reserve Bank of India said designated banks would provide Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation with dollars for their daily needs under a facility that began Oct. 12 and will continue until further notice. EconoTimes previously reported the rupee touching 94.80 per dollar amid new central bank measures governing oil marketers' dollar purchases and rupee-linked derivatives.
