Noida, Aug 27 (APAC Media): The rupee gained 4 paise to ₹95.40 against the US dollar in early trade on Thursday, tracking softer crude oil prices and easing concerns over possible disruptions to global oil supplies.
The domestic currency opened at ₹95.50 against the dollar and touched an early low of ₹95.52 before recovering to ₹95.40.
The rupee had settled 26 paise higher at ₹95.44 against the US dollar on Tuesday. The forex market was closed on Wednesday on account of Id-e-Milad.
Market participants said the rupee found support from a decline in Brent crude prices, which slipped below the USD 90 per barrel mark.
Concerns over a prolonged disruption to global oil supplies also eased amid reports of discussions between Iran and Oman on a possible temporary shipping corridor through the Strait of Hormuz. However, no final agreement has been reached so far.
Lower crude prices are generally positive for the Indian currency as India meets a large portion of its crude oil requirements through imports. A fall in oil prices can help reduce the country’s import bill and demand for dollars.
The dollar index, which gauges the greenback’s strength against a basket of six major currencies, was trading 0.04 per cent lower at 99.14.
The Reserve Bank of India has also taken measures to support foreign exchange inflows and maintain stability in the currency market. Recent steps relating to FCNR(B) deposits and overseas foreign currency borrowings have helped attract foreign currency into the domestic financial system.
Meanwhile, domestic equity markets and global developments remained key factors for currency traders.
Analysts said the rupee’s near-term movement would continue to be influenced by crude oil prices, dollar demand, foreign fund flows and developments in global trade and geopolitics.
The rupee has remained under pressure in recent months amid elevated dollar demand and external uncertainties, although central bank intervention and improved foreign currency inflows have provided some support.
–ENDS–
Disclaimer:Â This article is for informational purposes only and is based on publicly available information. APAC Media is not responsible for investment decisions or losses. Please conduct your own research or consult a financial adviser before investing.
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