Rupee Surges on Crude Oil Price Decline and Global Risk Sentiments

The Indian rupee appreciated 20 paise to close at 95.58 against the US dollar on Tuesday, supported by a sharp fall in crude oil prices and improved global risk sentiments.

Brent crude oil prices declined after reports emerged that Iran would open the Strait of Hormuz within seven days if the US lifts its port blockade and eases military pressure around it.

Forex traders pointed out that Brent crude oil prices fell sharply, leading to a decline in the value of the US dollar. This, in turn, supported the rupee's appreciation.

Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, noted that the rupee is expected to trade with a positive bias due to improved global risk sentiments and hopes of diplomatic talks to resolve the US-Iran war.