Rupee Gains 3 Paise to 95.34 Amid Weak Dollar and Lower Oil Prices

The Indian rupee opened on Tuesday at 95.35 against the US dollar before slipping to 95.34, marking a gain of 3 paise from its previous close.

This slight appreciation was attributed to the broad-based weakness in the US Dollar Index and improving global risk sentiment, which outweighed importer demand for dollars.

According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, lower oil prices also contributed to the rupee's gain. He noted that the dollar index had slipped below the psychologically important 100 level due to investors pricing in a more accommodative Federal Reserve outlook following softer US inflation data.

The dollar index was trading at 99.99, marginally up by 0.09 per cent. Brent crude, the global oil benchmark, was trading higher by 1.15 per cent at $84.73 per barrel in futures trade.