Rupee rises 1 paisa to 95.73 against US dollar in early trade
A rise in global crude oil prices added pressure to the local unit while a decline in the dollar index and FII inflows provided support, forex traders said.
On Wednesday, the Indian rupee inched up by 1 paisa to 95.73 against the US dollar, receiving support from the Reserve Bank of India's intervention amid heightened tensions in West Asia. The local currency opened at 95.72 at the interbank foreign exchange but dipped to 95.73, marking a 1-paisa rise from its previous close. On Tuesday, the rupee had depreciated 13 paise to 95.74 against the US dollar.
The forex market remained range-bound as oil prices exceeded $91, prompting bids from oil companies. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, attributed the resilience to suspected continued RBI intervention.
US President Donald Trump affirmed on Tuesday that the US has no talks planned with Iran but stressed the Strait of Hormuz remains open and operational, despite limited traffic and a reported strike on a ship exiting the waterway. The dollar index, which measures the greenback's strength against a basket of six currencies, was at 99.56, down 0.09 percent.
Brent crude oil, the global benchmark, surged 0.71 percent to $91.67 per barrel in futures trade. Meanwhile, India's equity markets saw the Sensex drop 166.19 points to 77,070.93 and the Nifty decline 59 points to 24,096.75. Foreign institutional investors contributed ₹1,651.53 crore in net equity purchases on Tuesday.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
