Rupee Strengthens as Crude Prices Ease and Equities Gain

The Indian rupee strengthened in early trade on Monday, supported by a moderation in global crude oil prices and a positive trend in domestic equities. At the interbank foreign exchange market, the rupee opened at ₹95.86 against the US dollar before gaining 24 paise to touch ₹95.72. The domestic currency had closed at ₹95.96 against the dollar on Friday.

While gains in domestic equities and improved foreign-fund sentiment supported the rupee, sustained dollar demand from oil importers and a firm US dollar index restricted a sharper recovery. Brent crude futures were down more than 2% at around $101.7 per barrel in Monday’s trade, offering some relief to the currency. Going ahead, movements in crude prices, foreign portfolio flows and global economic data are expected to remain key factors for the rupee.