Rupee Recovers Against Dollar Amid Easing Brent Crude Prices

The Indian rupee has seen a slight recovery against the US dollar in early trade on Thursday, rising by 4 paise to 95.40. This move comes as Brent crude prices ease below $90 per barrel for the first time in several sessions.

The reduction in oil prices has led to a decrease in fears of a prolonged disruption to global oil supplies, according to forex traders. While negotiations between Iran and Oman regarding a temporary shipping corridor through the Strait are ongoing, no final agreement has been reached.

Amit Pabari, MD of CR Forex Advisors, notes that after selling dollars for two consecutive months to support the rupee, the RBI turned into a net buyer in June, purchasing approximately $561 million. This was largely due to special measures implemented by the RBI for FCNR(B) deposits and Overseas Foreign Currency Borrowings (OFCB), which have attracted nearly $73 billion of foreign exchange inflows as of August 21.

The dollar index is trading at 99.14, down 0.04% from previous levels. Brent crude has also seen a decline in prices, trading lower by 0.41% at $87.48 per barrel. On the domestic market front, Sensex dipped 45.17 points to 77,422.70 and Nifty skid 6.40 points to 24,202.45.