The rupee climbed by 62 points to settle at 80.78 against the US dollar on Friday, as easing US CPI data along with a fall in the dollar index boosted investor sentiments.

Positive domestic equities and continuous foreign fund inflows also support the domestic currency, according to FX traders.

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At the interbank foreign exchange market, the Indian currency opened at 80.76 and touched an intra-day high of 80.58 and a low of 80.99 against the greenback.

The Indian rupee finally closed at 80.78, recording an increase of 62 paise over its previous close of 81.40.

“The Indian rupee appreciated on weak US Dollar and positive domestic markets. Sustained FII inflows also supported Rupee,” said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas. However, a surge in crude oil prices capped sharp gains.

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US inflation and core inflation declined to 7.7% and 6.3% in October from 8.2% and 6.6% in September, respectively, amid hopes that inflation may have peaked and Fed will not raise rates aggressively, he said.

“We expect Rupee to trade with a positive bias on the rise in risk appetite in global markets and weakness in the greenback,” Choudhary said.

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Traders are expected to remain cautious ahead of industrial production data from India and consumer sentiment data from the US on Friday, he added.

The dollar index, which measures the greenback’s strength against a basket of six currencies, fell 0.82% to 107.31.

Brent crude futures, the international oil benchmark surged 2.56% to USD 96.07 per barrel.

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On the domestic equity market front, the Sensex surged 1,181.34 points or 1.95% to end at 61,795.04. The Nifty gained 321.50 points or 1.78% to 18,349.70.

According to stock exchange data, foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth Rs 36.06 crore.