Rupee rises 31 paise on weaker dollar, lower oil prices and continued FII inflows
The Indian Rupee strengthened against the US dollar due to falling global crude oil prices and increased foreign institutional investment. Market sentiment improved following US President Donald Trump's decision to delay military strikes on Iran, easing geopolitical tensions.
Why it matters
Currency fluctuations impact inflation and import costs, making this a critical indicator for the Indian economy's stability in the face of global geopolitical shifts.
Falling gobal crude oil prices and weaker US dollar lifted rupee higher in early trade on Monday. The currency traded at a gain of 31 paise against US dollar, while drawing support from foreign fund inflows, higher forex reserves and continued intervention by the Reserve Bank of India (RBI), according to forex traders.Rupee opened at 95.15 against the US dollar in the interbank foreign exchange market before strengthening further to 95.12, marking a gain of 31 paise over its previous close of 95.43. The rise comes after the currency ended Friday 7 paise stronger, extending its positive run for a fifth consecutive session.The improvement in sentiment followed developments in the Middle East after US President Donald Trump said he had decided against carrying out planned strikes on Iran.On Sunday, Trump said American forces had been prepared to launch what he described as "the biggest attack since World War II".
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