Indian Rupee Begins On A Firmer Note, Climbs 5 Paise To 95.57 Against The US Dollar

Mumbai: The Indian rupee appreciated 5 paise to 95.57 against the US dollar in early trade on Wednesday, supported by softer crude oil prices and a recovery across Asian currencies.

At the interbank foreign exchange market, the rupee opened at 95.58 before strengthening to 95.57 against the American currency. The movement represented a gain of 5 paise from Tuesday’s closing level of 95.62.

Forex traders said the currency’s near-term direction would largely depend on geopolitical developments, global risk sentiment and movements in energy prices.

Crude Oil Provides Key Support

Brent crude futures declined 0.99 per cent to $98.27 per barrel, offering relief to the rupee and India’s broader macroeconomic outlook. Lower oil prices can reduce pressure on the country’s import bill and demand for dollars.

However, the firm US currency following the Federal Reserve’s interest rate increase and foreign portfolio investor selling limited the rupee’s gains.

The dollar index, which measures the greenback against a basket of six currencies, rose 0.10 per cent to 100.70.

Key Dollar-Rupee Levels

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, identified 96.30 as an upper barrier for the dollar-rupee pair.

He expects strong Reserve Bank of India intervention as the pair approaches the 96.30–96.50 region. Immediate rupee support is placed at 95.50, followed by the 95 level.

Domestic Equities Trade Higher

Positive equity market sentiment offered additional support to the domestic currency. The BSE Sensex climbed 283.66 points to 74,812.74 in early trade, while the NSE Nifty advanced 85.55 points to 23,414.55.

Nevertheless, sustained foreign fund outflows remained a concern. Foreign institutional investors sold Indian equities worth ₹3,809.99 crore on a net basis on Tuesday.

Traders will now monitor crude oil, the dollar index, geopolitical developments and RBI activity for signals on the rupee’s next move.