The Indian rupee on Monday opened strong against the US dollar, jumping 28 paise to 96.25 in early trade amid a decrease in oil prices and positive global sentiment after the US signalled an easing of tensions.
The US dollar index, which was trading at an all-time high during the war crisis in the Middle East, also softened, while domestic equities witnessed a strong buying trend, supporting the local currency further, according to forex traders.
At the interbank foreign exchange, the rupee opened at 96.18 but lost some ground to trade at 96.28 against the greenback, logging a gain of 28 paise from its previous closing level.
On Friday, the rupee recovered and settled around 20 paise higher at 96.53 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading down 0.26 per cent at 101.04.
The rupee’s surge against the dollar was supported by falling crude oil prices, which are trading 4.17 per cent down at $92.74 per barrel in futures trade after it touched $100 a barrel.
Experts say the recovery in crude oil prices and subsidence of tensions in West Asia are major factors behind the recovery.
US President Donald Trump is “giving talks some space”, Mike Waltz, the US ambassador to the United Nations, told reporters on Sunday night.
Foreign Institutional Investors offloaded equities worth ₹3,892.77 crore on a net basis on Friday, according to exchange data.
Also read: GCCs set to lease half of India's offices: Report
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