Rupee Gains 31 Paise as Oil Prices Fall and Geopolitical Tensions Ease

The Indian rupee strengthened by 31 paise against the US dollar in early trade on Monday, due to lower oil prices and a weaker greenback. The currency opened at 95.15 against the US dollar before rising further to 95.12, marking a gain of 31 paise over its previous close.

The rupee's rise comes after a string of positive sessions, extending its gains for a fifth consecutive day. It also follows developments in the Middle East, where US President Donald Trump announced he had decided against carrying out planned strikes on Iran.

Trump said American forces were prepared to launch what he described as 'the biggest attack since World War II', but put the plan on hold after requests from Gulf allies Qatar, Saudi Arabia, and the United Arab Emirates, as well as appeals from unnamed Iranian officials. The easing of geopolitical concerns was reflected in oil markets, with Brent crude falling 5% to $83.66 a barrel.

Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, attributed the rupee's support to lower Brent crude oil prices, a weaker dollar, and sustained foreign portfolio inflows. He also noted the RBI's continued presence in the foreign exchange market on Friday.