Rupee Strengthens Against Dollar Amid Crude Price Fall

The Indian Rupee has strengthened by 5 paise to 95.57 against the US dollar in early trade on Wednesday, supported by falling crude oil prices and a broader recovery in Asian currencies.

Falling crude oil prices remain a major support for the rupee, while a firm American currency after the US Fed's rate hike and foreign portfolio outflows remain key concerns, according to Anindya Banerjee, Head of Commodity and Currency Research at Kotak Securities.

Banerjee said that softer crude remains the rupee's clearest support, with a firm dollar after the Fed's hike and foreign portfolio outflows as the main offsets. He also noted that the Reserve Bank is expected to intervene if the pair approaches 96.30-96.50.