Rupee climbs 31 paise as dollar weakens, oil falls and FII buying persists
The Indian rupee rose 31 paise against the dollar on Monday, helped by a softer US currency, lower Brent crude prices and continued foreign fund inflows.
In interbank trading on Monday, the rupee appreciated by 31 paise, moving from an opening of 95.15 to 95.12 against the US dollar, marking its fifth consecutive session of gains. The appreciation followed a 5% drop in Brent crude to $83.66 a barrel, triggered by President Trump's decision to hold off on a large-scale attack on Iran after appeals from Gulf allies. A weaker dollar index, down 0.17%, further supported the currency.
Analysts attributed the rally to lower oil prices, sustained foreign portfolio inflows, and the Reserve Bank of India's continued intervention. Foreign Institutional Investors bought roughly Rs 277.48 crore of equities on Friday, and India's foreign-exchange reserves rose by $6.12 billion to $682.35 billion. Domestic markets reflected the optimism, with the Sensex and Nifty gaining over 470 and 150 points respectively, while the government's fiscal deficit stood at 18.2% of the target for the year ending June.
Why it matters
The rupee's rise signals easing inflation pressure and stronger investor confidence amid shifting global oil and geopolitical dynamics.
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