Rupee rises for 3rd straight session, gains 5 Paise to close at 94.53 against US Dollar
The Indian rupee extended its winning streak for the third straight trading session on Tuesday, appreciating by 5 paise to close at 94.53 (provisional) against the US dollar. The domestic currency was supported by easing geopolitical tensions in West Asia and a continued decline in global crude oil prices.
At the interbank foreign exchange market, the rupee opened at 94.69 and moved within a range of 94.48 to 94.71 before settling at its closing level. Market participants attributed the gain to improved global risk sentiment following reports of de-escalation in US-Iran tensions and diplomatic developments involving the Strait of Hormuz.
Forex traders noted that a weaker US dollar index and declining US Treasury yields also contributed to the rupee’s strength. The dollar index was trading marginally lower, while Brent crude prices fell by nearly 1.7%, easing pressure on oil-importing economies like India.
Analysts said that lower crude prices have been a key supportive factor for the rupee, given India’s heavy dependence on imported oil. Expectations of steady foreign institutional inflows and easing inflation concerns have also strengthened market sentiment.
In the domestic equity market, benchmark indices ended higher, with the Sensex gaining over 544 points and the Nifty rising by 135 points, further supporting positive investor sentiment.
Foreign institutional investors also turned net buyers, adding to the inflow momentum in Indian equities.
Market experts expect the rupee to maintain a positive bias in the near term, with support from global developments, oil price trends, and dollar movement. However, they noted that volatility may persist depending on geopolitical and economic cues from global markets.
