Indian Rupee Advances Against US Dollar Amid Easing Oil Prices and Market Optimism
Mumbai: The Indian rupee opened higher on Tuesday, gaining 15 paise to 95.28 against the US dollar, buoyed by improved market sentiment following Saudi Arabia’s decision to reduce August crude oil prices for Asia.
Early trade saw the rupee opening at 95.33 before peaking at 95.28, compared to Monday’s closing level of 95.43. The currency’s strength was reinforced by Saudi Arabia’s record 26-year low cut of $11 per barrel in Asia-bound crude prices, along with easing geopolitical tensions in the Middle East.
Lower risk premiums linked to the Middle East and sustained shipments through the Strait of Hormuz helped keep oil prices subdued. Additionally, purchases of 7 million barrels of crude by Indian oil majors such as Indian Oil and HPCL supported the rupee’s upward movement.
Meanwhile, the dollar index stood at 100.86, up 0.01 percent. Brent crude was trading at $72.45 per barrel, up 0.64 percent, reflecting ongoing supply concerns despite Saudi Arabia’s price cuts. Recent incidents, including a tanker fire near Oman due to a projectile strike in the Hormuz area, have added a layer of uncertainty to global oil markets.
In the domestic equity market, the Sensex rose 176 points to 78,461.16, while the Nifty gained 34.1 points to reach 24,464.45. Foreign Institutional Investors bought equities worth Rs 243.03 crore, signaling continued foreign interest.
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