Forex
Rupee Rises Amid Robust Liquidity, but Global Tensions Loom
The Indian rupee gained strength in early trade on Monday, appreciating by 4 paise to 94.39 against the US dollar.
This positive trend was supported by robust liquidity and heavy FCNR-related dollar inflows, but the global backdrop remains a challenge due to escalating tensions between the US and Iran, which has pushed Brent crude prices closer to $97 per barrel.
Amit Pabari, MD of CR Forex Advisors, noted that if global headwinds intensify, the USDINR could move back towards 95.00, 95.50, and eventually 96.00.