Rupee recovers 15 paise to 95.28 against US dollar in early trade
Rupee kicked off Tuesday's session on a firm footing, rising 15 paise against the US dollar as lower crude price expectations and easing tensions in the Middle East improved market sentiment. Saudi Arabia's decision to sharply cut oil prices for Asian buyers added to the positive mood. The currency opened at 95.33 in the interbank foreign exchange market and strengthened further to 95.28 against the US dollar.
Meanwhile, the session ended at 95.43 in the previous session.Forex traders attributed the currency’s gains to a decline in the Middle East risk premium and smoother movement of vessels through the Strait of Hormuz, factors that helped keep oil prices lower."The positive factor for the Indian rupee was Saudi Arabia slashing Asia oil prices by USD 11 per barrel in a record cut in the last 26 years amid improving supply conditions," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.He added that demand for dollars from Indian refiners remained evident.
According to Bhansali, Indian Oil and HPCL had floated tenders to purchase 7 million barrels of crude, which had kept the US dollar well bid over the past few days.Even as rupee advanced, the dollar index, which tracks the greenback against a basket of six currencies, was marginally higher at 100.86, up 0.01%.Brent crude futures also moved higher, climbing 0.64 per cent to USD 72.45 a barrel.
The increase came as fresh security concerns around the Strait of Hormuz countered expectations of abundant global crude supplies following Saudi Arabia's deep price cuts for Asian customers.A tanker sailing near the Strait of Hormuz was reportedly hit by a projectile off the coast of Oman, triggering a fire.
No casualties were reported in the incident.Indian equities also opened on a positive note. The BSE Sensex rose 176 points to 78,461.16 in early trade, while the NSE Nifty gained 34.1 points to reach 24,464.45.Meanwhile, exchange data showed that Foreign Institutional Investors (FIIs) remained net buyers on Monday, purchasing domestic equities worth Rs 243.03 crore.Get the latest business news and top stories.
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