Now Reading: Rupee rises 31 paise on oil drop, US-Iran tensions ease
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Rupee rises 31 paise on oil drop, US-Iran tensions ease
The rupee strengthened 31 paise to 95.12 against the US dollar on Monday, driven by a sharp fall in global crude oil prices and a weaker dollar after US President Donald Trump…
The Story in Brief
The rupee strengthened 31 paise to 95.12 against the US dollar on Monday, driven by a sharp fall in global crude oil prices and a weaker dollar after US President Donald Trump halted strikes on Iran. Forex trader Anil Kumar Bhansali said the currency was also supported by sustained foreign portfolio inflows and continued Reserve Bank of India (RBI) intervention in the forex market.
Brent crude futures dropped 5% to $83.66 per barrel following Trump's decision to avoid military action against Iran at the urging of Gulf allies including Saudi Arabia and the UAE. On the domestic equities front, the Sensex gained 470 points to 78,564.70 while the Nifty rose 150 points to 24,532.95. Foreign portfolio investors remained net buyers, purchasing equities worth Rs 277 crore on Friday.
The Indian Opinion
The rupee's gain is being presented as a direct result of US-Iran tensions easing and falling oil prices, but this oversimplifies currency markets. Other factors like RBI intervention and broader dollar weakness also played a role. A better test for the narrative will come when crude prices rise again, will the rupee hold its ground or resume its slide then?
Sources (2): thehindu.com, thehindu.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
