Rupee gains 48 Paise to close at 94.95 against US Dollar
The Indian rupee strengthened by 48 paise to close at 94.95 against the US dollar on Tuesday, supported by improved global risk sentiment and easing concerns over crude oil supplies through the Strait of Hormuz.
At the interbank foreign exchange market, the rupee opened at 95.33 and traded between 94.94 and 95.37 during the session before settling at 94.95 (provisional). On Monday, the domestic currency had weakened by 25 paise to close at 95.43 against the greenback.
Forex traders said sentiment improved after higher shipping traffic through the Strait of Hormuz reduced fears of supply disruptions. The rupee also benefited from softer crude oil prices after Saudi Arabia cut August crude prices for Asian buyers, easing inflation concerns for India, one of the world's largest crude importers.
According to market experts, a weaker US dollar and lower oil prices supported the domestic currency. However, importers' demand for dollars may limit further gains in the near term. Investors are also awaiting key US employment data for fresh market direction.
Meanwhile, the US Dollar Index, which measures the greenback against a basket of six major currencies, was trading 0.11 per cent higher at 100.96. Brent crude rose 1.19 per cent to USD 72.85 per barrel in futures trade.
In the domestic equity market, the BSE Sensex fell 104.35 points to close at 78,180.72, while the Nifty 50 slipped 31.65 points to settle at 24,398.70. Foreign institutional investors (FIIs) remained net buyers, purchasing equities worth ₹243.03 crore on Monday.
