Rupee Strengthens by 20 Paise, Closing at 95.41 Against US Dollar
The Indian rupee appreciated by 20 paise against the US dollar on Tuesday, closing at 95.41. This rebound followed a decline of 43 paise the previous day. Easing crude oil prices and a weaker dollar contributed to improved investor sentiment, alongside hopes for a pause in hostilities between the US and Iran.
Forex traders noted that the rupee received support from positive domestic equities, softer US Treasury yields, and potential intervention by the Reserve Bank of India. At the interbank foreign exchange market, the rupee opened at 95.47, fluctuating between an intraday high of 95.23 and a low of 95.67.
Analysts expressed caution regarding the rupee’s outlook. Anuj Choudhary, a research analyst at Mirae Asset ShareKhan, indicated that uncertainty surrounding the West Asia conflict could lead to further pressure on the rupee if crude oil prices spike again. He suggested that the USD-INR spot price is expected to trade within a range of 95.10 to 95.80, depending on upcoming US economic data.
The dollar index, which measures the greenback against a basket of six currencies, was down 0.24% at 99.80. Brent crude, the global oil benchmark, fell 2.04% to $92.33 per barrel in futures trade. Dilip Parmar, a research analyst at HDFC Securities, attributed the rupee’s strength to improving risk appetite, driven by lower crude prices and a weaker dollar.
On the domestic equity front, the Sensex rose by 394.50 points to close at 73,918.76, while the Nifty gained 119.10 points, ending at 23,242.10. Despite this, foreign institutional investors sold equities worth Rs 4,566.03 crore on a net basis during the session.
The rupee also found support from India’s external sector data, which showed a current account surplus of $7.1 billion, or 0.7% of GDP, for the January-March quarter of 2025-26. This surplus was bolstered by higher services exports and remittances. However, for the full fiscal year 2025-26, the current account deficit stood at $25.2 billion, or 0.6% of GDP, compared to $22.9 billion, or 0.6% of GDP, the previous year.
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