Rupee Holds Steady at 94.39 Amid Global Headwinds
The Indian rupee traded in a narrow range on Monday and appreciated by 4 paise to 94.39 against the US dollar in early trade, supported by strong FCNR-related dollar inflows. However, elevated crude oil prices amid persistent global headwinds negated this support.
Forex traders said that despite the robust liquidity wave, renewed military strikes have driven Brent crude towards USD 97 per barrel, reigniting fears over Middle Eastern energy supply disruptions. The rupee opened at 94.40 against the US dollar and then touched 94.39, registering a gain of 4 paise from its previous close.
Amit Pabari, MD of CR Forex Advisors, said that the global backdrop remains a challenge for the rupee. He predicted that if global headwinds intensify, USDINR could move back towards 95.00, 95.50, and eventually 96.00.