Indian Rupee Opens On A Firm Note, Climbs 24 Paise To 95.72 Against US Dollar

Mumbai: The Indian rupee strengthened sharply in early trade on Monday, supported by falling crude oil prices, gains in domestic equities and improved foreign investment sentiment.

At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar before strengthening to 95.72. This represented a gain of 24 paise from its previous closing level of 95.96.

The domestic currency had ended Friday’s session 7 paise lower against the greenback.

Forex traders said early gains in the Sensex and Nifty supported the rupee. However, dollar demand from oil importers and broader strength in the US currency restricted a sharper appreciation.

Crude Oil Prices Retreat

Brent crude oil futures declined 2.10% to $101.69 per barrel, offering relief to the rupee. India imports a large share of its energy requirements, making the currency sensitive to movements in global oil prices.

Crude experienced a volatile previous week. Brent closed at $105.68 on Monday and climbed to $108.75 on Tuesday after touching a weekly high of $109.45.

Prices subsequently reversed as concerns over possible disruptions to Saudi Arabian oil supplies began to ease.

Dollar Index Remains Firm

The dollar index, which measures the greenback against six major currencies, rose 0.09% to 100.31. Analysts expect the rupee to trade within a broad range of 95.60–96.50, with resistance seen around 96.40–96.50.

Domestic Markets Support Rupee

Indian equity benchmarks opened higher, with the Sensex advancing 448.32 points to 74,743.28. The Nifty gained 50.30 points to reach 23,396.70.

Foreign Institutional Investors purchased domestic equities worth ₹599.54 crore on Friday, according to exchange data.

Meanwhile, India’s foreign exchange reserves declined by $4.92 billion to $780.78 billion during the week ended September 11, following a fall in foreign currency assets and gold reserves.