Rupee gains 16 Paise to close at 94.39 against US Dollar

The Indian rupee appreciated by 16 paise to settle at 94.39 (provisional) against the US dollar, supported by easing global crude oil prices and positive sentiment in domestic equity markets, forex traders said.

At the interbank foreign exchange market, the rupee opened at 94.30 and moved in a range of 94.13 to 94.56 during the day before closing stronger compared to the previous session. The rupee had gained 21 paise in the previous trading session as well.

Market participants said the local currency was aided by a weaker US dollar and a sharp decline in Brent crude prices, which reduced pressure on India’s import bill. However, foreign institutional investor (FII) outflows limited sharper gains.

Forex analysts noted that while the rupee benefited from lower commodity prices and improved risk sentiment, the overall outlook remains sensitive to global monetary policy signals, especially from the US Federal Reserve.

In the broader market, the dollar index slipped marginally, while domestic equity benchmarks ended higher, further supporting the rupee’s movement.

Brent crude oil prices declined by over 1 per cent in futures trade, adding to relief for emerging market currencies like the rupee.