Rupee Appreciates Amid Crude Oil Price Retreat

The Indian rupee appreciated by 15 paise to close at 95.81 (provisional) against the US dollar on Monday, as crude oil prices retreated from their elevated levels due to improved global risk sentiment amid expectations of diplomatic talks between the US and Iran.

Forex traders said the rupee firmed up on weak crude oil prices, with hopes of diplomatic talks between the two nations. Additionally, positive domestic markets and softening of US Treasury yields supported the local unit.

At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar, then gained some ground and touched 95.72 against the American currency in intraday trade.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said that they expect the rupee to trade with a slight positive bias on falling crude oil prices from higher levels, as improved global risk sentiments amid expectations of diplomatic talks between the US and Iran. However, reports that Iran shot down a US drone in the Strait of Hormuz may again deteriorate risk sentiments.