Rupee Gains 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 some of this support, with Brent crude trading higher at USD 97.05 per barrel due to renewed military strikes and fears over Middle Eastern energy supply disruptions.

Forex traders said the rupee continues to draw strength from robust liquidity waves, but the situation remains challenging globally.

Amit Pabari of CR Forex Advisors noted that the global backdrop is still a challenge for the rupee, which could move back towards 95.00, 95.50 and eventually 96.00 if global headwinds intensify.