Noida, Sep 22 (APAC Media): The rupee rose 13 paise to ₹95.65 against the US dollar in early trade on Tuesday, tracking gains in domestic equity markets and easing dollar demand.
At the interbank foreign exchange market, the rupee opened at ₹95.69 and strengthened further to ₹95.65 in initial deals, registering a rise of 13 paise from its previous close.
The Indian currency has been witnessing volatility in recent trading sessions amid movements in the US dollar, crude oil prices and foreign capital flows.
Forex market participants are keeping a close watch on the dollar index, which tracks the greenback’s movement against a basket of major global currencies. Changes in the index can influence emerging-market currencies, including the rupee.
Crude oil prices are another key factor for the domestic currency. Since India imports a large portion of its crude oil requirements, changes in global oil prices can affect the country’s dollar demand and trade position.
Dealers are also monitoring foreign portfolio investment flows into Indian financial markets. Sustained foreign inflows can support the rupee, while increased demand for dollars from overseas investors or importers can exert pressure on the currency.
Movements in domestic benchmark equity indices are likely to provide further cues during the trading session.
Market participants are also tracking developments in global financial markets for indications about the direction of the US dollar and emerging-market currencies.
The Reserve Bank of India is another factor closely watched by currency dealers, particularly during periods of sharp volatility in the foreign exchange market.
The rupee’s movement through the day is expected to remain dependent on global currency trends, crude oil prices, equity-market sentiment and foreign fund flows.
Investors will also monitor upcoming global economic data and signals from major central banks for further direction in currency markets.
–ENDS–
Disclaimer: 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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