Mumbai: The Indian rupee strengthened against the US dollar in the foreign exchange market, supported by improving investor sentiment, easing pressure from crude oil prices, and positive domestic market cues. Currency traders reported that the local unit benefited from a combination of foreign capital flows and expectations of stability in financial markets.
The appreciation comes after a period of weakness during which the rupee touched record-low levels against the dollar. Recent gains have been supported by a softer US dollar index and improved risk appetite among investors. Market participants also pointed to declining energy prices during parts of the previous week, which helped reduce concerns regarding India's import bill and inflation outlook.
According to market data, the dollar index remained near the 99-mark, reflecting mixed global currency movements. Analysts noted that foreign institutional investment flows, central bank actions, and geopolitical developments continue to influence exchange rate trends. The rupee's performance remains closely linked to crude oil prices due to India's significant dependence on energy imports.
Experts expect the currency to trade within a narrow range in the near term, with investors awaiting fresh signals from global markets and monetary policy developments. Any major movement in oil prices or changes in global risk sentiment could influence the rupee's direction in the coming weeks.
