Rupee jumps 77 paise to 83.77 against U.S. dollar in early trade

Forex traders optimistic as rupee gains against dollar, boosted by robust GST collections and positive equities trend.

The rupee appreciated 77 paise to 83.77 against the U.S. dollar in early trade on Friday, supported by sustained foreign fund inflows and stronger domestic data.

Forex traders said GST collections for April were robust at ₹2.37 lakh crore, an all-time high, reflecting the health of domestic demand. Moreover, a positive trend in domestic equities driven by foreign fund inflows further boosted sentiments.

However, caution lingers, as they noted any escalation in tensions between India and Pakistan could swiftly reverse gains and pressurise the rupee, much like past geopolitical episodes.

At the interbank foreign exchange, the domestic unit opened at 83.98 against the greenback, then gained ground and touched 83.77, registering a gain of 77 paise over its previous close.

On Wednesday, the rupee surged 42 paise to 84.54 against the U.S. dollar.

The forex market was closed on Thursday on account of Maharashtra Day.

"The rupee's 2% rise in March marked its best performance since November 2018, aided by a weaker U.S. dollar outlook. However, caution persists amid ongoing geopolitical risks — particularly tensions with Pakistan over Kashmir — which could spark rupee volatility.