Rupee Strengthens Against Dollar Amid Crude Oil Price Decline

The Indian rupee has strengthened against the US dollar in early trade on Wednesday, driven by declining crude oil prices and a broader recovery in Asian currencies. At the interbank foreign exchange market, the rupee opened at 95.58 before touching 95.57 against the American currency, marking a gain of 5 paise from its previous close.

Forex traders are cautious about future developments, citing geopolitical tensions as a major influence on currency markets. Softer crude oil prices continue to provide support for the rupee, while foreign portfolio outflows and a firm dollar following the US Fed's rate hike remain concerns.

Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities, said that the rupee is expected to face resistance around 96.30, with strong Reserve Bank intervention anticipated as it approaches this level. The dollar index was trading higher by 0.10% at 100.70, while Brent crude oil prices fell by 0.99% to USD 98.27 per barrel.