Mumbai

Therupee appreciated 10 paise to close at 94.50 (provisional) against the US dollar, as Brent crude oil prices and the US dollar index retreated further from their elevated levels. Forex traders said the rupee opened on a positive note as Brent crude has fallen below USD 79 per barrel, with markets pricing in the reopening of the Strait of Hormuz following the US-Iran peace framework. Moreover, positive domestic equities supported investor sentiments further. At the interbank foreign exchange, the rupee opened at 94.46 against the US dollar and traded in the range of 94.29-94.60. Eventually, it settled at 94.50 (provisional), up 10 paise from its previous close. On Tuesday, the rupee ended 2 paise lower at 94.60 against the US dollar. In the past four trading sessions, the USD/INR pair has gained over 140 paise against the US dollar. Forex traders said that with oil prices moving in India’s favour and foreign inflows remaining supportive, the near-term outlook for the rupee remains positive.

“We expect the rupee to trade with a positive bias amid positive global market sentiments and softening of crude oil prices. Decline in the US dollar and softening of US Treasury yields may also support prices,” said Anuj Choudhary, Research Analyst at Mirae Asset ShareKhan.