Rupee extends winning streak, breaks below 94 against dollar: What's next

NEW DELHI: The Indian rupee extended its winning streak on Monday, trading below the 94 mark against the US dollar. The currency gained 24 paise to reach 93.74 against the greenback in early trade, climbing from around 93.85 in the interbank forex market. The rupee's rally was driven by weaker crude oil prices, increased foreign fund inflows, and optimism for a resolution to Middle East tensions.

Forex traders believe the rupee could sustain its upward momentum if diplomatic efforts in the Middle East progress, reducing the risk premium in crude oil prices. Brent crude prices fell below $100, trading near $98, as hopes of peace grew. Currency markets appreciated even the prospect of a lasting agreement, according to Amit Pabari, managing director of CR Forex Advisors.

Foreign fund inflows, with foreign institutional investors buying equities worth Rs 13,749.82 crore on Friday, also bolstered the domestic currency. With the rupee now below the 94 mark, Pabari anticipates further appreciation, projecting the currency to reach 93.50 and 93.00 levels while 94.40-94.50 serves as the immediate resistance zone.