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Rupee closed higher at 95.1300 per Dollar on Friday (05 June 2026), versus its previous close of 95.8700 per Dollar.Powered by Capital Market - Live News

The Indian rupee appreciated 81 paise to close at 94.93 (provisional) against the US dollar on Friday after the Reserve Bank announced measures to support foreign capital inflows and strengthen forex liquidity. The announcements in the RBI policy boosted investor sentiments after the apex bank asserted that the country`s forex reserves provide a sufficient buffer against external shocks. The Reserve Bank on Friday expectedly kept interest rates unchanged for the second time in a row as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis. The RBI kept its repo rate Steady at 5.25% amid uncertainty owing to US-Iran War. However, it expanded the Fully Accessible Route, or FAR, to include all new 15-year, 30-year and 40-year government security issuances. Due to this, the foreign investors will get wider access to longer-tenor Indian government bonds. This also opens up more room to invest in India�s bond market. The central bank has also removed investment concentration limits for foreign portfolio investors under the general route. This gives FPIs greater flexibility while investing in Indian debt. The benchmark 10-year G sec yield slipped following this and broke well under 7% mark. Yields also turned lower as government has scrapped long-term capital gains tax on investments made by foreign institutional investors (FIIs) in government securities. Powered by Capital Market - Live News

Euro jumped on Friday against the dollar as recent Eurozone data signals towards an ECB rate hike in the near term. Euro-area inflation hit 3.2% in May, its highest in over two and a half years amid rising inflationary pressures due to elevated oil prices. However, Eurozone retail sales data for April declined at a faster pace of 0.4% in April, compared to the 0.3% contraction expected. Meanwhile, dollar index is trading slightly lower on Friday, favoring gains in Euro. The US Dollar Index (DXY), which tracks the Greenback�s value against six major currencies, trades 0.19% lower to near 99.19 ahead of the United States (US) Nonfarm Payrolls (NFP) data for May. EUR/USD pair is extending gains above $1.16 at $1.1643, up 0.20% on the day although caution will be exercised amid developments surrounding a potential US-Iran peace agreement to end recent hostilities. Tensions remain highly elevated following warnings from Iranian Foreign Minister Abbas Araghchi, who declared that the strategic Strait of Hormuz falls within Iranian and Omani territorial waters and asserted that US regional military bases are active targets for retaliation. On the NSE, EUR/INR futures are down 0.76% at 110.80. Powered by Capital Market - Live News

British Pound edged up today as steady risk appetite in world markets supported the currency. Pound took a hit earlier in the week amid tepid economic cues. UK service-sector activity moved into contraction in May for the first time in more than a year. PMI Services (final) fell sharply from 52.7 to 49.3, while PMI Composite dropped from 52.6 to 49.7, marking the first contraction in overall private-sector activity in 13 months and the weakest reading since April 2025. However, lows around 1.3400 mark capped losses for GBP/USD pair. It is currently trading at 1.3456, up 0.23% on the day. On NSE, GBP/INR futures are quoting at 128.12, down 0.67% on the day after holding around 128.50 mark in morning trades. Overall movement is rangebound. Powered by Capital Market - Live News

The Reserve Bank of India governor reiterated that India�s exchange rate policy remains unchanged. RBI does not target any specific level or band; instead, we allow the exchange rate to be determined by market forces, he said. The exchange rate may sometimes witness movements, often caused by speculative pressures, especially in the wake of heightened uncertainty, that are not in sync with fundamentals and are disruptive of economic activity. While the central banks� objective is not to resist market-driven adjustments, it will curb excessive volatility and prevent disorderly market movements, he added. Foreign exchange reserves provide a strong buffer against external shocks and we have a broad range of regulatory and market-based instruments to respond effectively as may be required. In this regard, RBI remain vigilant and are fully prepared to do whatever it takes to preserve orderly market conditions, the RBI governor noted. The central bank governor noted that India�s foreign exchange reserves stood at a healthy US$ 682.3 billion, adequate in terms of the standard metrics of reserve adequacy including import cover (about 11 months) and external debt (89.1 per cent). Various policy initiatives including the recent agreements with major trading partners, opening the insurance sector to 100 per cent FDI, ethanol blending program, push for energy transition, easing of FDI restrictions for land-bordering countries, liberalisation of the ECB framework, and several others are expected to strengthen our balance of payments, he said.Powered by Capital Market - Live News