Rupee Surges Against Dollar: West Asia Deal & Crude Oil Drop Boost INR
By Sivam
The Indian Rupee gained significantly against the US Dollar today, buoyed by hopes of a US-Iran deal, a sharp fall in crude oil prices, and strong domestic stock markets.
Rupee Gains on Geopolitical Hopes
The Indian rupee strengthened against the US dollar in early Monday trade, fueled by reports of a potential US-Iran agreement to resolve the West Asia conflict and reopen the Strait of Hormuz. This development led to a crash in Brent crude prices, further supporting the rupee’s sentiment.
Strong domestic equity markets and a weaker American currency also contributed to the rupee’s upward momentum.
Key Market Figures
- The partially convertible currency is currently trading at 94.54.
- This marks a gain of 64 paise from its previous close of 95.18 on Friday.
- The rupee touched an intraday high of 94.74 and a low of 94.45.
Economic Context
Investors are closely watching the US Federal Reserve’s upcoming policy decision under Chair Kevin Warsh, where interest rates are widely expected to remain unchanged.
Despite the rupee’s strength, foreign institutional investors (FIIs) offloaded equities worth Rs 1,082.18 crore on a net basis last Friday. Additionally, the Reserve Bank of India (RBI) reported a $711 million drop in India’s forex reserves, bringing the total to $681.610 billion for the week ended June 5, primarily due to a decline in foreign currency reserves.