Rupee rises 35 paise to 95.64 against US dollar in early trade

The Indian rupee strengthened by 35 paise to 95.64 against the US dollar in early trading on Tuesday, according to initial market reports. This gain was attributed to a decline in crude oil prices and reduced geopolitical tensions, as well as a weaker US dollar index and optimistic equity market sentiment. The rupee started the day at 95.75 and continued to rise to 95.64 against the greenback, marking a 35-paise increase from its previous closing level.

On Monday, the rupee had appreciated sharply by 54 paise, reaching 95.99 against the US dollar, following a 20-paise rise on Friday. Meanwhile, the dollar index, which measures the strength of the dollar against a basket of six currencies, saw a slight decline of 0.06 percent, settling at 101.31. Brent crude oil prices also experienced a drop of 1.43 percent, settling at $87.10 per barrel.

Analysts attributed the oil price decline to the US and Iran refraining from attacking each other's targets for the third day in a row, and mediators making progress in facilitating negotiations between the two nations. US President Donald Trump reportedly invited Iran for further discussions, stating that the US had been "hitting them very hard."

Iran, however, denied any direct talks or agreements in place. On the domestic front, the Sensex added 14.66 points, or 0.02 percent, to close at 76,850.44, while the Nifty climbed 27.10 points, or 0.11 percent, to 24,023.45. Foreign Institutional Investors (FIIs) sold equities worth Rs 1,688.23 crore on a net basis on Monday, as per exchange data.