Mumbai, Jul 3 (PTI) The rupee appreciated 14 paise to close at 95.21 (provisional) against the US dollar on Friday as the dollar index retreated from its recent 15-month high levels and mirrored positive domestic equities.

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

At the interbank foreign exchange market, the rupee opened at 95.20 against the American currency and traded in a range of 95.16-95.35 during the session.

The rupee finally closed at 95.21 (provisional), registering a rise of 14 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.

According to experts, the Reserve Bank of India (RBI) is actively purchasing dollars to rebuild its foreign exchange reserves, which have dropped to roughly USD 672.6 billion from a February peak of USD 728.49 billion.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 100.75, lower than its recent 15-month high of 101.6.

Meanwhile, Brent crude, the global oil benchmark, was trading higher by 0.22 per cent at USD 71.96 per barrel in futures trade.

On the domestic equity market front, Sensex climbed 261.79 points to settle at 77,763.91, while the Nifty was up 95.15 points to 24,270.85.

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 HVA

Rupee appreciation reflects weaker dollar index, even as importer demand and foreign outflows keep pressure on the currency. The rupee appreciated against the US dollar in interbank foreign exchange trade, supported by a weaker dollar index and gains in domestic equities, but remained under pressure from dollar demand by importers and corporate hedgers. It moved within a narrow range before closing stronger at 95.21 against the US dollar, while market commentary noted Reserve Bank of India dollar buying to rebuild foreign exchange reserves and continued foreign investor selling in Indian equities.