Rupee Jumps 28 Paise to 96.25 as Crude Oil Falls, Global Sentiment Improves
The Indian rupee strengthened by 28 paise to 96.25 against the US dollar in early trade on Monday, driven by a sharp decline in crude oil prices and positive global sentiment after the United States and Iran signalled an easing of tensions in West Asia.
Forex traders said the dollar index also retreated from elevated levels, while domestic equities witnessed a strong buying trend, further supporting the local currency.
At the interbank foreign exchange, the rupee opened at 96.18 but later traded at 96.28 against the greenback, logging a gain of 28 paise from its previous closing level.
On Friday, the rupee had recovered from a low and settled 20 paise higher at 96.53 against the US dollar.
The dollar index, which measures the greenback's strength against a basket of six currencies, was trading 0.26% lower at 101.04.
Brent crude, the global oil benchmark, fell 4.17% to $92.74 per barrel in futures trade. Analysts attributed the drop to easing West Asian tensions after the US and Iran paused strikes.
US President Donald Trump is "giving talks some space," Mike Waltz, the US ambassador to the United Nations, told Fox News. "He's giving it a little bit of room," Mr. Waltz said, adding that Oman, Iran, and other negotiators have been engaged at all levels over the past few weeks.
On the domestic equity market front, the Sensex rose 613.80 points (0.81%) to 76,673.57, while the Nifty climbed 165.40 points (0.70%) to 23,931.55. Foreign institutional investors offloaded equities worth ₹3,892.77 crore on a net basis on Friday, according to exchange data.
