Mumbai, Jul 3 (PTI) The rupee appreciated 19 paise to 95.16 against US dollar in early trade on Friday, as the dollar index retreated from its recent 15-month high levels.

Forex traders said despite a weaker dollar index and lower crude oil prices rupee is still facing pressure from robust dollar demand from importers and corporate hedgers.

At the interbank foreign exchange market, the rupee opened at 95.20, then touched 95.16 against the US dollar, registering a gain of 19 paise from its previous close.

On Thursday, the rupee pared initial gains and settled for the day on a negative note, lower by 19 paise at 95.35 against the US dollar.

Despite a weaker dollar index and lower crude oil prices, the rupee still weakened on Thursday. "If the rupee cannot strengthen on positive global cues, any negative development could easily push USDINR towards the 95.80 to 96.00 zone," CR Forex Advisors MD Amit Pabari said.

Pabari further added that the Reserve Bank of India is focused on restoring its forex reserves which have declined from a February peak of USD 728.49 billion to around USD 672.6 billion. Hence, the central bank has less room to allow the rupee to appreciate freely, "even when global conditions are supportive," he said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.81, lower from its recent 15-month high of 101.6.

Meanwhile, Brent crude, the global oil benchmark, was trading lower by 0.63 per cent at USD 72.25 per barrel in futures trade.

On the domestic equity market front, Sensex jumped 545.89 points to 78,048.01 in early trade, while the Nifty surged 173.85 points to 24,346.90.

Foreign institutional investors sold equities worth Rs 311.82 crore on a net basis on Thursday, according to exchange data.

Foreign investors extended their selling spree in June, withdrawing Rs 49,340 crore (USD 5.16 billion) from Indian equities, triggered by a combination of early-month global risk aversion, a preference for developed markets, soaring US bond yields, and stretched valuations in the domestic market.

According to data from the Central Depository Services (India) Ltd, the total withdrawals by Foreign Portfolio Investors (FPIs) from Indian equities have surged to Rs 2.7 lakh crore so far in 2026, surpassing the Rs 1.66 lakh crore pulled out during the entire calendar year 2025. PTI DRR DR DR

Rupee pressure persists despite weaker dollar and crude, as import demand and reserve rebuilding limit gains. The rupee appreciated in early interbank trade as the dollar index eased from recent highs and Brent crude traded lower, but the currency remained under pressure from sustained dollar demand by importers and corporate hedgers. Foreign exchange commentary also indicated that the Reserve Bank of India was focused on rebuilding forex reserves, leaving less room for the rupee to strengthen freely even when external conditions were supportive. Foreign investors continued net selling in Indian equities amid global risk aversion and higher US bond yields.