Noida, May 25 (APAC Media): The Indian rupee appreciated 40 paise in early trade on Monday to settle at 95.20 against the US dollar, supported by improved global risk sentiment and intermittent dollar inflows, dealers said.
Forex market participants said the domestic currency opened stronger amid a broadly positive tone in Asian markets and easing concerns over global risk assets.
State-run banks were also seen stepping in with US dollar sales to curb volatility, traders added.
“The rupee recovered on the back of mild dollar weakness and better risk appetite in regional markets. However, gains remain capped due to persistent importer demand,” a forex dealer at a state-run bank said.
Federal Reserve Governor Waller indicated that the central bank should move away from an easing bias, adding uncertainty to the global economic outlook. Meanwhile, US banks will remain closed in observance of Memorial Day. In Europe, UK banks will be shut for the Spring Bank Holiday, while financial institutions in France, Germany and Switzerland will be closed for Whit Monday.
Market participants noted that optimism over a potential reopening of the Strait of Hormuz helped drag crude oil prices below the $100-per-barrel level, easing concerns over supply disruptions and weighing on the greenback.
However, gains in risk appetite were tempered by cautious remarks from the Trump administration on the likelihood of a near-term agreement with Iran, keeping traders alert to potential volatility in commodity and currency markets.
Asian currencies traded mostly higher, with the Thai baht leading gains after rising 0.749%, dealers said.
The Malaysian ringgit and South Korean won also advanced, up 0.476% and 0.459%, respectively, reflecting improved regional risk sentiment.
The Philippine peso strengthened 0.456%, while the Taiwan dollar climbed 0.289%.
The Singapore dollar added 0.243%, and the Japanese yen rose 0.195%. The Chinese renminbi posted a marginal gain of 0.081%.
The rupee extended gains for a second consecutive session on Friday (May 22, 2026), closing at 95.73 against the U.S. dollar, supported by easing crude oil prices and reported intervention by the Reserve Bank of India (RBI). Sentiment was also influenced by improving global risk appetite, with senior U.S. officials indicating that the United States and Iran are close to an agreement that includes a proposed 60-day ceasefire extension.
In contrast, the Indonesian rupiah underperformed, slipping 0.282% against the dollar amid mixed trading in emerging Asian markets.
Analysts noted that sustained foreign portfolio outflows and elevated crude oil prices continue to weigh on sentiment, even as periodic central bank intervention has helped prevent sharp depreciation.
“The overall trend still leans toward volatility. Any meaningful recovery will depend on foreign inflows and stability in global crude prices,” another market expert said.
Traders expect the rupee to remain sensitive to global cues, particularly movements in the US dollar index, crude oil trends, and geopolitical developments.
News Agency Inputs
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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