Noida, Sep 23 (APAC Media): The rupee rose 5 paise to ₹95.57 against the US dollar in early trade on Wednesday, tracking gains in Asian currencies and easing crude oil prices, forex traders said.
At the interbank foreign exchange market, the rupee opened at ₹95.58 against the US dollar and moved to ₹95.57, up 5 paise from its previous close. The domestic currency had settled at ₹95.62 against the dollar on Tuesday.
Traders said the decline in crude oil prices provided some support to the rupee, as lower oil prices could help ease pressure on India’s import bill and reduce demand for the US currency.
Market participants noted that a strong US dollar and ongoing foreign fund outflows limited gains in the domestic currency.
The dollar index, which gauges the greenback’s strength against a basket of six major currencies, was trading 0.10 per cent higher at 100.70.
Brent crude, the global oil benchmark, declined 0.99 per cent to USD 98.27 a barrel in futures trade.
Market participants continued to monitor geopolitical developments and their potential impact on global currency and commodity markets.
“Support for the rupee is seen around ₹95.50 and ₹95.00, while the ₹96.30-₹96.50 zone could act as an important level,” Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said.
He added that the Reserve Bank of India could intervene as the rupee approaches the ₹96.30-₹96.50 range.
In the domestic equity market, the 30-share BSE Sensex rose 283.66 points to 74,812.74, while the NSE Nifty gained 85.55 points to 23,414.55 in early trade.
Foreign institutional investors remained net sellers in Indian equities, offloading shares worth ₹3,809.99 crore on Tuesday, according to exchange data.
The rupee’s movement in the coming sessions is expected to remain sensitive to global crude prices, movements in the US dollar, foreign capital flows and developments in international markets.
News Agency Inputs
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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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