Rupee Bounces 4 Paise as Crude Prices and Global Tensions Weigh

The Indian rupee started the week on a positive note, appreciating by 4 paise to 94.39 against the US dollar in early trade on Monday.

This marginal gain comes despite elevated crude oil prices and persistent global headwinds, which have been negating the support from strong FCNR-related dollar inflows.

Forex traders said the rupee continues to draw strength from robust liquidity waves, but renewed military strikes have driven Brent crude towards USD 97 per barrel, reigniting fears over Middle Eastern energy supply disruptions.

Amit Pabari, MD of CR Forex Advisors, noted that the global backdrop remains a challenge and warned that if global headwinds intensify, USDINR could move back towards 95.00, 95.50, and eventually 96.00.