India's Finance Ministry exempted rupee payments made to the National Iranian Oil Company (NIOC) for crude oil imports from a steep withholding tax, according to a government order reviewed by Reuters.
The US dollar strength, oil prices and next year’s general elections will determine the rupee’s direction in the near-term, with fundamentals being supportive for the domestic currency over the next 6-12 months, said a report by Standard Chartered.
A deadline for Indians to deposit invalid rupee notes at banks closes on Friday as attention turns towards the potential political ramifications of Prime Minister Narendra Modi's bold currency shakeup.
The partially convertible rupee trades at 61.69 per dollar compared with its previous close of 61.85. The Indian rupee strengthened against the dollar on Friday morning, tracking mixed cues from other Asian currencies.