Rupee Jumps on Crude Price Slump, Eyes RBI Policy Decision

The Indian rupee strengthened against the US dollar in early trade on August 5, rising to 94.89 due to falling crude oil prices following progress in U.S.-Iran talks and a pause in planned strikes.

According to forex traders, investors are closely awaiting the upcoming RBI monetary policy decision for further cues.

The rupee opened at 94.90 and touched 94.89, registering a gain of 39 paise from its previous close on Tuesday (August 4) when it closed at 95.28 against the American currency.

CR Forex Advisors MD Amit Pabari noted that optimism around the Hormuz talks could help the rupee test its support zone of 94.80-95.00, but warned that if the deal actually goes through, the rupee could see a sharper move of 30 to 40 paise on the stronger side.