Indian Rupee revisits two-month high amid weak US Dollar, lower oil prices

The Indian rupee experienced a 9 paise depreciation to 94.55 per US dollar in early trade on Thursday, affected by the strength of the American currency in global markets. Forex traders noted that a positive domestic market and falling crude oil prices helped mitigate the decline. The rupee opened at 94.36 at the interbank foreign exchange market, slipping to 94.55 against the US dollar, falling 9 paise from its previous close.

On Wednesday, the rupee remained strong for two consecutive sessions, closing 29 paise higher at 94.46 against the US dollar. According to Anil Kumar Bhansali, the Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, forward-looking markets are rapidly eliminating the geopolitical risk premium from the US-Israel-Iran conflict, as a Democratic-controlled Congress is anticipated to limit military funding and prioritize diplomatic negotiations.

The dollar index, tracking the greenback's strength against six currencies, fell by 0.34 percent at 101.22. Brent crude oil, a global benchmark, dropped 1.04 percent to USD 93.64 per barrel in futures trade. Bhansali added that the significant decline in crude prices, the worst single-day drop since May, was due to the Democratic victory in the US midterm elections.

On the domestic equity market, the Sensex increased by 1,403.71 points to 78,689.87, while the Nifty rose by 378.85 points to 24,340.40. Foreign Institutional Investors (FIIs) were net buyers on Wednesday, buying equities worth Rs 7,284.03 crore.