The domestic currency gained 35 paise to trade at 95.64 against the US dollar following eased international tensions.

Easing Middle East tensions and falling oil prices have triggered a sharp rally in the Indian rupee.

Global geopolitical shifts heavily influenced Asian currency markets this week. Consequently, the Indian rupee experienced a significant upward trajectory. The domestic currency opened robustly at 95.75 at the interbank exchange. It strengthened further to reach 95.64 against the US dollar.

This marked a notable 35 paise increase from its previous close. Easing tensions in the Middle East primarily drove this positive momentum. The United States and Iran suspended mutual attacks for three days. Therefore, international mediators made substantial progress toward resuming diplomatic negotiations.

US leadership claimed Iran requested further discussions due to heavy military pressure. However, Iranian officials firmly denied that any direct talks were occurring. The temporary peace immediately affected global commodities. Consequently, Brent crude futures dropped 1.43% to $87.10 per barrel.

Falling global oil prices directly benefit India as a major importer. Furthermore, a weakening US dollar index provided additional support. The dollar index recently fell 0.06% to 101.31 against major currencies. Forex traders noted these combined factors strongly boosted the Indian rupee.

The currency had already appreciated sharply by 54 paise on Monday. This followed a previous 20 paise gain during Friday’s trading session. Meanwhile, domestic equity markets mirrored this cautious but positive global sentiment. The Sensex managed a slight increase to reach 76,850.44 points.

Similarly, the Nifty index climbed up 27.10 points to hit 24,023.45. Foreign institutional investors had recently reduced their domestic holdings. Exchange data showed net equity sales worth Rs 1,688.23 crore on Monday. Nevertheless, the rupee remains resilient amidst shifting global economic currents.

(Source: The Hindu)

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