The rupee strengthened 17 paise to 86.19 against the US dollar in early trade on Friday (March 21). Positive domestic equities and fresh foreign fund inflows supported the gain.

At the interbank forex market, the rupee opened at 86.26 and later touched 86.19. On Thursday (March 20), it had settled at 86.36.

Foreign investors have been buying heavily into Indian debt and equities. FPIs turned net buyers for the second time this week.

Data shows FIIs purchased ₹3,239 crore in equities on Thursday (March 20). They also invested ₹5,500 crore in debt, driven by India’s real yield standing at 3.028%.

Amit Pabari, MD at CR Forex Advisors, said the rupee reacted to the US Fed meeting but gained strength from FII inflows. He expects the USD-INR pair to trade between 86.00 and 86.80 in the near term.

Meanwhile, the US dollar index rose 0.13% to 103.98. Brent crude climbed 0.44% to $72.32 per barrel.

Equities stayed strong, with the Sensex rising 159 points to 76,507 and Nifty up 74 points at 23,265.

–With PTI inputs