Indian Rupee Surges 61 Paise Against US Dollar as Crude Oil Prices Ease
The Indian rupee strengthened by 61 paise against the US dollar after Brent crude oil prices declined following signals from US President Donald Trump regarding a possible peace agreement with Iran.
Prasanth Subramani
The Indian rupee gained 61 paise against the US dollar in Wednesday’s trading session after Brent crude oil prices retreated toward the $100-per-barrel mark following signals from US President Donald Trump regarding a possible peace agreement with Iran.
In the interbank foreign exchange market, the rupee opened at 95 against the US dollar before witnessing volatility during the day’s trade. The currency later weakened to an intraday low of 95.18 before recovering strongly.
At the close of trading, the rupee settled at 94.57 against the dollar, marking a sharp gain of 61 paise compared to the previous session’s closing value.
The recovery comes after the rupee had touched a historic low of 95.44 against the dollar on Tuesday amid renewed tensions in the Gulf region and fears over disruptions to global supply chains following attacks targeting infrastructure in the United Arab Emirates.
Investor sentiment had weakened due to escalating geopolitical tensions and concerns over energy supplies. However, easing crude oil prices and expectations of potential intervention by the Reserve Bank of India (RBI) helped stabilize the domestic currency market.
Market analysts noted that declining oil prices generally support the Indian rupee, as India is heavily dependent on crude oil imports. Any reduction in global oil prices tends to reduce import costs and improve currency stability.
