The rupee gained 31 paise to 95.12 against the US dollar in early trade, tracking crude oil prices and a softer dollar. Foreign institutional inflows, a rise in the country’s forex reserves, and Reserve Bank of India (RBI) support further strengthened the local unit, as per forex traders.
At the interbank foreign exchange, the rupee opened at 95.15 against the greenback before rising further to 95.12, up 31 paise from its previous close. The rupee stayed in a positive trajectory for the fifth consecutive day on Friday, gaining 7 paise to settle at 95.43 against the US dollar.
On Sunday, US President Donald Trump said he held off on ordering American forces to carry out new strikes against Tehran after Gulf allies urged him to halt all attacks.
He said that a plan was to strike Iran, but after requests from Qatar, Kuwait and Bahrain, which would have resonated to the scale of World War II, according to President Trump.
However, he decided to scrap the plan and give diplomacy more time to play out after hearing from key Gulf leaders — including Saudi Crown Prince Mohammed bin Salman — as well as at the request of unnamed Iranian officials.
The rupee gained momentum after Brent crude oil prices fell, the dollar weakened, and sustained foreign portfolio inflows occurred.
Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said, “As Brent oil prices fell to USD 84 per barrel after Trump delayed strikes on Iran, the rupee opened at 95.15 on Monday and is expected to trade in the range of 95.00-95.50.”
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