The Indian rupee appreciated by 13 paise to 92.78 against the US dollar during early trading on Monday, bolstered by a significant decline in crude oil prices amid expectations of reduced geopolitical tensions and measures implemented by the Reserve Bank of India.
Forex traders indicated that the rupee is expected to remain within a narrow trading range, particularly given the ongoing volatility in West Asia following Iran’s closure of the Strait of Hormuz to shipping.
In the interbank foreign exchange market, the rupee opened at 92.73 before reaching as high as 92.70, ultimately trading at 92.78 against the dollar, marking an increase of 13 paise from its previous close.
On Friday, the rupee had closed at 92.91, appreciating by 28 paise, which followed a gain of 19 paise in the preceding session on Thursday.
Meanwhile, the dollar index, which measures the US dollar’s strength against a basket of six currencies, rose by 0.22 percent to reach 98.11.
Brent crude, a key global oil benchmark, was down 5.34 percent at $95.21 per barrel in futures trading. Analysts noted that crude prices had rebounded from below the $90-per-barrel threshold reached on Friday, as escalating geopolitical tensions due to a standoff between the US and Iran hindered maritime operations in the Strait of Hormuz.
In the domestic equity market, trading remained volatile in the morning session, with the 30-share Sensex up by 63.11 points, or 0.08 percent, to reach 78,556.65, while the Nifty declined by 3.10 points, or 0.01 percent, settling at 24,367.55.
Foreign institutional investors purchased equities worth ₹683.20 crore on Friday, according to exchange data.
