Rupee Rises on Crude Price Drop, Diplomatic Hopes

The Indian rupee rose by 20 paise to close at 95.58 against the US dollar on Tuesday, driven by a sharp decline in crude oil prices following reports of improved global risk sentiments and hopes for diplomatic talks to resolve the US-Iran conflict.

Brent crude oil prices plummeted after media reports suggested that Iran would open the Strait of Hormuz within seven days if the US lifts its port blockade and eases military pressure around it. This development led to a significant drop in Brent crude, which fell by 1.14% to $99.20 per barrel.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, noted that the rupee's appreciation is expected to continue on account of improved global risk sentiments and hopes for diplomatic talks. He also predicted that falling crude oil prices and a decline in the US dollar may support the rupee.