Rupee Posts Gains Against Dollar as Oil Prices Moderate

The Indian rupee gained ground against the US dollar on Monday, rising by 24 paise to 95.72 in early trade. The appreciation was driven by a slight moderation in crude oil prices and a positive trend in domestic equities.

Forex traders pointed out that initial gains in domestic stocks and improved foreign fund sentiment boosted investor confidence. However, sustained importer demand for the greenback from oil companies and broader strength in the US dollar Index weighed on the local currency.

The rupee opened at 95.86 against the US dollar before gaining some ground to touch 95.72, marking a gain of 24 paise from its previous close. On Friday, the rupee had closed lower by 7 paise at 95.96 against the US dollar.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, predicted that the rupee would trade in a broad range of 95.60-96.50, with the 96.40-96.50 zone acting as stiff resistance.