Noida, July 23 (APAC Media): The Indian rupee strengthened marginally against the U.S. dollar in early trade on Thursday, recovering from the previous session’s decline, although rising crude oil prices limited the currency’s gains.
The rupee opened at 96.49 per U.S. dollar, compared with its previous close of 96.56, supported by mild dollar selling and expectations of intervention by the Reserve Bank of India (RBI), according to market participants.
However, the domestic currency remained under pressure as higher global crude oil prices increased demand for the U.S. dollar from oil importers. India, one of the world’s largest crude importers, is particularly vulnerable to fluctuations in energy prices, which can widen the country’s trade deficit and weigh on the rupee.
Dealers said the RBI continued to monitor the foreign exchange market closely to curb excessive volatility, helping contain sharper losses in the local currency.
The rupee is expected to remain range-bound in the near term as investors assess global oil price trends, the movement of the U.S. dollar, foreign fund flows, and upcoming domestic and international economic data.
Market participants said any sustained rise in crude oil prices or renewed strength in the U.S. dollar could keep pressure on the rupee, while central bank intervention may help limit excessive volatility.
–ENDS–
Disclaimer:Â This article is for informational purposes only. APAC Media is not liable for any investment decisions or losses. Please conduct your own research or consult a financial advisor before investing.
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